Gold shares and exchange traded funds (ETFs) that track them are glowing right now, but analysts warn that a correction could be just around the corner, so be cautious when it comes to basking in the light.

This week, a number of gold stocks hit new 52-week highs as gold futures jumped above $1,000 an ounce – a big deal for gold shares and investors. This was a mentally important mark for investors and the excitement had the market abuzz.

Donna Yesalavich and Geoffrey Rogow for The Wall Street Journal report that now may not be the time to jump on the golden bandwagon. A technical analysis of gold stocks, which are up some 12% this month alone, are signaling a pullback may be near and buying at this level should be done with a grain of salt.

The two main drivers of the gold rise includes global growth and consumption trends and the weakness found in the U.S. dollar. The climb of gold prices this week in particular can be attributed to the weakness in the U.S. dollar, inflation fears and skepticism that the market’s rally has legs.

What can you do? First of all, you can’t fight the trend. Gold is above its 200-day moving average. Second, have a strategy. No trend lasts forever, and if you wind up buying at or near the top, an exit strategy will help put a cap on your losses. You can read more about our trend following discipline in The ETF Trend Following Playbook.

• SPDR Gold Shares (NYSEArca: GLD): up 12.9% year-to-date

• iShares COMEX Gold Trust (NYSEArca: IAU): up 12.8% year-to-date

• PowerShares DB Gold (NYSEArca: DGL): up 11.4% year-to-date

• ETFS Gold Trust (NYSEArca: SGOL): launched this week

For more stories about gold, visit our gold category.

Tags: Commodity ETFs, DGL, ETF Book, GLD, Gold, IAU, Precious Metals, Trend Following