After the Swiss National Bank shocked financial markets by scrapping the franc’s peg to the euro, GLD gained about 3% last Thursday, moving above its 200-day moving average for the first time since September, stoking speculation that the franc’s rally could spark a commodities countertrend that would ignite a raft of short covering across the commodities complex. [Swissie Could Stoke Commodities Rebound]
Ahead of the European Central Bank meeting Thursday, investors are flocking to gold ETFs on expectations the ECB will unveil its own quantitative easing measures that could boost the allure of gold as a safe-haven asset.
GLD’s move above the $122 level, which was a resistance area created by an inverse head and shoulders pattern, could be harbinger of a near-term move to $130.
SPDR Gold Shares
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of GLD.