In today’s video I look at the Gold ETF (GLD) to see what it is telling us about the price of gold. I also check in on the Gold Miners ETF (GDX) and Junior Gold Miners ETF (GDXJ).
The price of gold has trended up slightly so far this year. It has been a fairly choppy move. I actually thought we were starting to see another push higher this week but it broke down and stalled out. The Dec futures contract closed at $1280 on Friday.
Gold moves for a variety of reasons and all of them seem to make sense at one time or another. It could be due to inflation/deflation, flight to safety, interest rates, stock market or several other things. I believe that the core underpinnings of gold is that it is a commodity and the price of gold moves based on supply and demand.
NM Rothschild who founded the Rothschild Group over 200 years ago in London once said of gold, “I know of only two men who really understand the value of gold, an obscure clerk in the basement vault of the Banque de France and one of the directors of the Bank of England. Unfortunately they disagree.”
So where is the price of gold going? No one knows for sure. But in the video below I talk about the message the charts are sending us at this point in time.