Gold exchange traded funds rallied about 2% on Monday as the metal’s price closed in on $1,800 an ounce.
“SPDR Gold Shares (NYSEArca: GLD) is rising today as investors seek safety and security. The fund is outperforming and pushing to its best level for six weeks,” noted Tarquin Coe, technical analyst at Investors Intelligence.
The $71.3 billion ETF is up nearly 10% over the past month. The fund holds more than 40 million ounces of gold bullion. [Gold Miner ETF Aims for 2011 High; Einhorn Buys]
The gold ETF has rallied through falling trendline resistance and the rally should extend back up to the September high of $185.85 a share as conditions are not overbought based on relative strength, Co said.
Other gold ETFs include iShares Gold Trust (NYSEArca: IAU), Powershares DB Gold Fund (NYSEArca: DGL) and ETFS Physical Swiss Gold Shares (NYSEArca: SGOL).