Gold ETFs are threatening to slip into negative territory for 2012 as the precious metal’s price falls below a key long-term trend line.
SPDR Gold Shares (NYSEArca: GLD) was down 0.8% Friday afternoon with gold futures trading below $1,600 an ounce. The ETF is down nearly 4% on the week.
The pace of the 11-year bull market in gold has increased over time although the metal is trading more than 16% below its Sept. 6, 2011 peak, according to chartoftheday.com.
Over the past eight months gold has “declined more than at any point since 2008 as many investors have opted to park a portion of their investment dollars in dollar-denominated T-bonds as opposed to gold as the European debt crisis continues and China slows,” it noted.