Gold has retracted the last two days back to under $950 in volatile trade after touching $1,000 /ounce briefly last week. All the market drama has helped Gold significantly in recent months to surge back into investor favor and now a well deserved rest looks to be in store.
StockTradingToGo Community member Allen recently covered posts highlighting three reasons to buy gold and debunked several key gold myths. When talking about Gold here on the site we refer exclusively to the StreetTracks Gold Trust (GLD) which is the Exchange Traded Fund that tracks the price of the gold bullion.
While we are Gold fans I think the best way to consider Gold as a buy is to look at the stock chart of GLD. A clear view of support & resistance can be seen with a daily and weekly chart which we have below.
For investors looking to get in on this action add GLD to your watch list and keep an eye on the ETF as it naturally develops a fresh base. The technical buypoint will be with a break to new highs above $100 ($1000 /ounce respectively)