Gold prices are trading about 11% higher this year, which is shy of the S&P 500’s 15% gains. The SPDR Gold Trust ETF and the Direxion Daily Gold Miners Bull 3X Shares rose 1.19% and 2.69%, respectively, on Friday due to uncertainty about U.S. tax reform and a weak U.S. dollar index. But the popular gold funds lost some of their momentum on Monday as traders took profits off of the table and the dollar strengthened.
With the rise in geopolitical tensions and equity valuations, gold has become a popular asset class among many investors. Ray Dalio, manager of Bridgewater Associates, one of the world’s largest hedge funds, increased his gold holdings by several hundred percent during the third quarter. Through GLD and the iShares Gold Trust ETF the hedge fund owns about $600 million worth of gold exposure. (See also: What Drives the Price of Gold?)
Gold prices broke out from key resistance last week, but traders will be closely watching these critical levels. …read more
Read more here: Are Gold Prices Poised for a Rebound?
Category: GLD, NUGT, IAU