Gold futures and physically-backed ETFs have been pressure this year amid speculation the Federal Reserve is preparing to raise interest rates, which has pushed the dollar higher. Higher interest rates would diminish gold’s attractiveness since the precious metal does not pay interest like fixed-income assets.
“Ari Wald of Oppenheimer said the technicals are also pointing to more losses ahead. Gold’s 200-day moving average has been lagging despite some attempted rallies, Wald said, and resistance should come in at $1,100,” reports CNBC.
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Tom Lydon’s clients owns shares of GLD.