Gold Bounces on Friday: Weekly Gold ETF Update

July 1, 2013

The bad news for gold for the week ending on June 21 was its steep nosedive on Thursday, June 20, which brought it to a closing price of $1,277.80 per ounce. After a slight, 1.45 percent rebound on Friday, June 21 brought the yellow metal up to $1,296.30 per ounce, it resumed its decline until Friday, June 28, when a 2.62 percent jump brought it to $1,232.10 per ounce.

From May 17 through June 18, gold had been trading in a range between $1,360 and $1,415. On June 19, gold closed at exactly $1,351 per ounce and on June 20, it sank as low as $1,275.40 before closing at $1,277.80 for a loss of 5.41 percent. Gold has been on a losing streak since that time, despite two consecutive, upbeat Fridays. Nick Barisheff: The Case for (Much) Higher Gold Prices

The chart below depicts the trading activity in the SPDR Gold Trust ETF (NYSEARCA:GLD) during the past 180 days.

GLD Chart June 28Despite its 2.73 percent jump on Friday, June 28, GLD fell 4.75 percent during the week. At Friday’s close, GLD was 11.40 percent below its 50-day moving average of $134.45. The MACD is below the signal line and both are descending into the abyss below the zero line. Its Relative Strength Index dropped to 30.22 from last week’s 31.16, although it remained above the “oversold” threshold of 30. In other words, even though the price for GLD stinks, it’s not oversold yet.

The following is a summary of how precious metal spot prices and ETFs performed from the close on Friday, June 21 until the close on Friday, June 28:

Gold ETF Update:

Gold Spot Price: $1,232.10/oz, -4.95%

SPDR Gold Trust ETF (NYSEARCA:GLD): -4.75%, This ETF reflects the current price and trends of Gold Bullion and so offers exposure to the gold market within a brokerage account. The gold spot price for NYSEARCA:GLD is determined by the 24 hour global over-the-counter (OTC) gold market. The SPDR Gold Trust ETF (NYSEARCA:GLD) is the world’s largest gold ETF and second largest ETF in existence.

iShares Gold Trust ETF (NYSEARCA:IAU): -4.61%, This ETF reflects the current price and trends of Gold Bullion and so offers exposure to the gold market within a brokerage account. The iShares Gold Trust ETF (NYSEARCA:IAU) is backed by gold held in trusts located in London, Toronto, and New York. The gold spot price for the iShares Gold Trust ETF (NYSEARCA:IAU) is set by the London PM Fix Price for spot gold as determined by the London Bullion Market Association.

Silver ETF Update:

Silver Spot Price: $19.56 oz, -2.49% Gold Squeeze in India Stokes Silver Demand

iShares Silver Trust ETF (NYSEARCA:SLV): -2.16%, This ETF reflects the current price of silver and trends of Silver Bullion and so offers exposure to the silver market within a brokerage account. The iShares Silver Trust ETF (NYSEARCA:SLV) is backed by real silver and the silver price is set by the London PM Fix Price for silver as determined by the London Bullion Market Association.

ProShares Ultra Silver ETF (NYSEARCA:AGQ): -5.18%, This ETF reflects the 2X daily return of the current price of Silver Bullion. The ETF is priced in US dollars based on the afternoon closing price of Silver in London. The ProShares Ultra Silver ETF thus offers double exposure to the silver market within a brokerage account.

Platinum ETF Update:

Platinum Spot Price: $1,341.20 /oz, -2.61%

ETFS Physical Platinum Shares ETF (NYSEARCA:PPLT): -2.73% This ETF reflects the current spot price of physical platinum and so offers exposure to the platinum market within a brokerage account. The price of platinum is specified by the London Platinum and Palladium Market (LPPM) rules and is backed by Platinum held in vaults in London, UK and Zurich, Switzerland.

Bottom Line: The price of Gold continues to sink, with its spot price falling to its lowest level since August of 2010.

Source: http://wallstreetsectorselector.com/2013/06/gold-bounces-on-friday-weekly-gold-etf-update/

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