A look at SPDR Gold Trust — Mature consolidation?
SPDR Gold Trust ($GLD) averages are at $120.68 (21 day SMA), $119.28 (50 day SMA), $126.89 (200 day SMA). Over the past 52 weeks GLD has traded from a low of $114.46 to a high of $160.05. GLD was last at $122.93 on a volume of 3,757,620. Average daily volume has been at 7,811,929.
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The SPDR Gold Trust ETF (GLD) has been basing since printing a low of $115 last June. While the stock remains in consolidation, the 200-day moving average has been drifting lower and lower and is not just slightly above the stock price. Also, the chart shows a breakout above a downtrending resistance line that’s been relevant since last August. So this could be poised to break out of consolidation and begin a new uptrend. Technical traders may want to start a position now and then add to it as the price moves through the 200-day moving average.
The investment seeks to replicate the performance, net of expenses, of the price of gold bullion.
The trust holds gold, and is expected to issue baskets in exchange for deposits of gold, and to distribute gold in connection with redemption of baskets. The gold held by the trust will only be sold on an as-needed basis to pay trust expenses, in the event the trust terminates and liquidates its assets, or as otherwise required by law or regulation.