“Gold is one of the few assets that remain in positive territory this year, in a sense it is one of the last assets standing, and because of this as investors head for cash they sell the assets that have performed,” UBS said in a note, Bloomberg reported.
David Chojnacki, market technician at Street One Financial, said gold is approaching some key support levels in the long term gold bull run. The iShares Gold Trust (NYSEArca: IAU) is down nearly 13% from its Sept. 2 closing high.
iShares Gold Trust
Chart source: StockCharts.com.
Full disclosure: Tom Lydon’s clients own GLD and SLV.