Investing

Gold Back To Uncertainty Trading Versus Risk-On Trading? And Silver? (GLD, SLV)

Trading gold has been a wild trip for investors and speculators over the recent years, but now gold is magically back to nearly $1,800.00 per ounce. In fact, gold is reaching a key area which was tested twice during last…

By Jon C. Ogg
Published February 22, 2012, 3:32pm ET · 1 min read

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Trading gold has been a wild trip for investors and speculators over the recent years, but now gold is magically back to nearly $1,800.00 per ounce. In fact, gold is reaching a key area which was tested twice during last November now that we have seen a $20+ rise come out of nowhere today.  Gold challenged the $1800 mark in November and now gold is trading at almost $1797.00 an ounce after a $21.50 rally today.

SPDR Gold Trust (NYSE: GLD) is following the shiny yellow metal just as you would expect, although its gain is 1% to $172.75 and trading volume is 13 million shares versus an average daily volume of 12 million shares. Silver is hardly budging and the iShares Silver Trust (NYSE: SLV) is up only four-cents at $33.42 today.

The love of gold (and silver) is often tiring.  During some time gold is considered as the “risk-on trade” and other times it is the “safe haven trade.”  For some reason today feels like it may have been a technical trade because crude oil was mostly steady around the $106.00 per barrel mark and stocks and bonds have had no real clear direction with much action behind the moves. A chart review at stockcharts.com shows a converging of the 50-day and 200-day moving averages.

 

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Jon C. Ogg

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.

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