Gold ETFs Near Oversold Levels

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Gold ETFs near oversold levels after equity markets drop additional percent

goldbar 300x211 Gold ETFs Near Oversold LevelsGold spot price and gold ETFs are slowly approaching oversold levels as the precious metal continues to track equity markets into the red.  The gold spot price decreased .32% to close at $1703.50 per ounce, while the SPDR Gold Trust ETF (NYSEARCA:GLD) lost .34% and the iShares Gold Trust ETF (NYSEARCA:IAU) lost .42%.

Gold ETFs have been following equity prices lately, and equity prices have been dropping rapidly due to technical weakness and continued spooks from abroad and at home.  Gold ETFs and gold spot prices typically rise when the value of the US Dollar or other currencies declines, so if the Fed or ECB step in and “ease” further, gold ETFs might begin to rise again. More likely however, is that the gold spot price and gold ETFs are all reaching oversold levels on their RSI indicators. A security typically rebounds from oversold levels as soon as a level of ’30′ is broken on the RSI, so the fact that gold and gold ETFs are near the ’30′ mark suggests that gold prices are at least due for a technical turn around.

Gold Spot Price: $1703.50/oz, -.32%

SPDR Gold Trust ETF (NYSEARCA:GLD): -.34%, 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): -.42%, 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.

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