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).
The precious metal has rallied the past couple weeks as the Eurozone debt crisis heats up again. The interest rate cut from the European Central Bank has also provided fuel. Loose monetary policies among central banks are a key fundamental driver of gold. [Gold ETFs Rise on Greece Uncertainty, ECB Rate Cut]
ETFS Physical Swiss Gold Shares
Full disclosure: Tom Lydon’s clients own GLD.