Options traders are turning more bullish on gold and silver ETFs as the precious metal funds battle key resistance.
“SPDR Gold Shares (NYSEArca: GLD) call buyers appeared for the second straight session as the ETF met some resistance on its 200 day moving average, peaking at $164.89 a share yesterday before giving back some recent gains,” said Street One Financial’s head of ETF/options sales and trading Paul Weisbruch in a report Wednesday.
The bullion fund was up 7.4% year to date heading into Wednesday’s action, but slipped about 1% in afternoon trading.
Gold ETFs are flat for the week after rallying Monday following comments from Federal Reserve Chairman Ben Bernanke on unemployment and the U.S. economy. [Gold ETFs Test Resistance]
“Options flows in another metal, iShares Silver Trust (NYSEArca: SLV), have been decidedly leaning more to the ‘bull’ side in recent sessions as well with the presence of call buyers, however volumes have not been astounding,” Weisbruch noted.