Gold Hits Record Highs (GLD, IAU, SGOL)

Gold's currently most active contract, August delivery, rose $4.80 (0.4%) today. This may not sound like big news, until you see its actual price: $1,245.60 per ounce, an all-time high. The previous high was $1,243.10.

 

In times of uncertainty, gold has long been a safe haven. And uncertainty doesn't even begin to describe this market. Consider the VIX, which tracks the volatility of the S&P 500. As recently as April 8, only two months ago, the index was at 16.48. After hitting highs of 45.79 on May 20, it remains at a high value of 36.57 as of June 7.

 

Investors are celebrating as the market rises 3% one day and then panics into a 4% fall the next. While the markets have been trading relatively sideways for a few days, people are still on edge about deficits, jobs and currencies.

 

That's where the precious metals trade comes in -- and here gold is king.

 

In an interview with Larry Williams on the Benzinga podcast, the commodities trader sounded a similar note on precious metals and other commodities. He loves the volatility, as it gives him an opportunity to make money no matter what way the market turns.

 

Even so, not everyone wants to jump into the commodities market. But they can still play the gold trade with exchange traded funds. The most popular is probably streetTRACKS Gold Shares ETF GLD. But others such as iShares COMEX Gold Trust Fund IAU or ETFS Physical Swiss Gold Shares ETF (SGOL) offer a similar play.

 

Posted In: Long IdeasFuturesIntraday UpdateMarketsTrading IdeasETFs
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