“On Tuesday, when gold gained more than 1 percent, one trader spent more than $13 million on a bet that the SPDR Gold ETF, the GLD, would rise to levels not seen since May 2015 in the next two months. Specifically, that trader purchased 75,000 of the March 108/117 call spreads for $1.80 each. Since each options contract accounts for 100 shares of stock, this is a $13.5 million bet that the GLD will rise more than 9 percent by March expiration,” reports CNBC.
Investors pulled $2.2 billion from GLD, the world’s largest bullion-backed ETF last year, after pulling $3.2 billion from the fund in 2014. To start 2016, the trend of gold ETF outflows is abating as investors have poured more than $956 million into GLD.
“If the gold price could build a base around current levels above $1,100, the market should remain in an uptrend for several weeks,” according to Mining.com.
SPDR Gold Shares
Tom Lydon’s clients own shares of GLD.