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.