The iShares Gold Trust (GLD) rallied into year-end and is now in a consolidation. Gold bulls (especially near-term) are patiently waiting for its next move.
A breakout of the recent consolidation would put 130-135 in view for the Gold ETF (GLD).
On the GLD weekly chart, the yellow metal remains in a volatile sideways pattern, which may be a very large base.
Considering the size of the prior bull and bear market, it’s not surprising that GLD has been all over the place… but in the end, really has gone nowhere.
For a long-term buy signal, we would ultimately like to see the top of the base taken out in the 135 area. That would open up many different bullish scenarios. On the downside, as long as 100 holds on GLD, a potential base is possible.
The Commitment of Traders (COT) data is slightly bullish while sentiment is approaching optimistic levels.
Gold ETF Chart
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The author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
