Gold exchange traded funds seem to be coiling for their next big move with the precious metal’s price hovering around $1,700 an ounce in March.
Gold ETFs such as SPDR Gold Shares (NYSEArca: GLD), iShares Gold Trust (NYSEArca: IAU) and ETFS Physical Swiss Gold Shares (NYSEArca: SGOL) are sitting on gains of about 10% this year despite the sideways trading so far this month. [ETF Chart of the Day: Gold]
Whether gold next sees $1,800 or $1,600 an ounce this year depends largely on the outlook for more quantitative easing from the Federal Reserve. [List of Top Gold ETFs]
Loose monetary policies from the Fed and other central banks have been a major driver of the historic rally in gold the past few years. Many investors view gold as a hedge against currency debasement. [Gold ETFs and Inflation]
Investors in gold ETFs are sending bullish signals on the precious metal. ETF bullion holdings are at a record high of more than 2,400 metric tons. [Gold ETF Bullion Holdings Rise to All-Time High]
In fact, gold ETF investors haven’t been shaken at all by the steep pullback on Feb. 29 when prices lost as much as $100 an ounce.