As Gold Touches A Record, (GLD) and (GDX) Are Up
November 23, 2009 8:51 AM
As the world continues to worry about the weakness of the dollar, investors persist in chasing gold. Gold touched a record high - $1,167.45 an ounce – crossing many technical resistance points. Gold’s record rise also pushed up ETF’s in gold. Since the beginning of the year, SPDR Gold Trust (ETF) (NYSE: GLD) has risen 30% and Market Vectors Gold Miners (ETF) (NYSE: GDX) has risen 50%.
CNN (NYSE: TWC) says that it is not just gold that investors are buying. As dollar becomes cheaper, dollar priced commodities – like crude – also become cheaper for those who hold other currencies. So, investors are betting on dollar priced commodities as well.
Technical analysts at Barclay’s Capital feel that there is a lot of upside in Gold. They target a price of $1,175 per ounce by December 31st. The prices of other precious metals are also up. CNN quoted ETF Securities saying that its holdings in platinum and palladium backed exchange traded commodities touched record highs last Friday. SPDR Gold Trust (ETF) and Market Vectors Gold Miners (ETF) will continue to do very well thanks to a declining dollar.
