“After seeing selling in January, gold ETPs moved strongly back into favour in February and March as investors revised down their highly bullish US growth assumptions and revised up the global risk outlook. Broad commodity ETPs also saw a turn in sentiment, with asset allocators rotating into the asset class as an alternative to overstretched developed market equities,” said ETF Securities Head of Research and Investment Strategy Nicholas Brooks in a research note. [Improving Sentiment Good for Commodities ETFs]
Regarding GLD, Wagner says the ETF is worth considering as a “potential trend reversal play above last week’s high. To confirm the reversal, GLD eventually will have to clear the highs of March.”
SPDR Gold Shares
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of GLD.