Gold Bugs Squashed Despite Chaos In The Broad Market

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

SPDR Gold Trust ETF GLD shares were trading lower by $3.12 (2.7 percent) at $11.88 in Friday's session. It is not acting as a safe haven for investors while the broad market is in a steep decline.

Since February 17, the ETF has been in a narrow trading range from $114.29 to $117.07, with a majority of the trading action taking place between $114.99 and $116.64. The consolidation has taken place after it peaked on January 22 at $125.58, coinciding with the Gold futures peaking at $1300.00.

The recent consolidation in the issue coincided with the Gold futures clinging to the $1200.00 level. When that level was breached with a vengeance, the ETF followed in kind.

It has found intraday support at $111.70 but has not been able to rebound back into the $112.00 handle at the time this article was written.