Gold traded 0.42% lower in the New York session amid strength in the greenback
- Gold is trading at $1341.20 per ounce at 09:40 GMT this morning, 0.07% lower from the New York close.
- This morning, the precious metal traded at a high of $1344.10 per ounce and a low of $1339.90 per ounce.
- Yesterday, gold traded 0.42% lower in the New York session and closed at $1342.20 per ounce, amid strength in the greenback. Immediate downside, the first support level is seen at $1337.80 per ounce, while on the upside, the first resistance level is at $1346.70 per ounce.
Don’t buy the gold miners until this happens: Technical analyst
Gold traded 0.42% lower Gold mining stocks have skyrocketed this year, and at this point investors might want to wait before hopping into the hot trade.
“Gold stocks are still in a primary uptrend, but have been pulling back recently with the other defensive areas of the market,” MKM technical analyst Jonathan Krinsky said Monday on CNBC’s “Trading Nation.”
Yet even with a recent dip, the popular GDX ETF tracking the miners has surged 115 percent in 2016.
“Typically in bull markets and precious metals, you will see the equities outperform the commodity, and that’s what we’ve seen for the most part of this year,” he said. “So if you look at the ratio of GDX versus [gold-tracking ETF] GLD, as long as that ratio is moving higher and the primary trend is higher, it’s probably [fine].”
Stifel Nicolaus portfolio manager Chad Morganlander encourages investors interested in gold to buy the GLD rather than the GDX.
“There is individual equity risk when buying the miners,” while in GLD, “you could get the thematic right by buying GLD and actually hedge your bet on your portfolio overall,” Morganlander said on “Trading Nation.”Click here for reuse options!
Copyright 2016 Investors Buz