Gold ETF GLD Sees Massive Inflow As Spot Gold Holds Above $2,000: A Technical Analysis.

Zinger Key Points
  • GDL is an ETF that tracks the price of spot gold.
  • The ETF is trading in an uptrend just under the all-time high.

The SPDR Gold Trust GLD was bouncing up about 0.7% higher on Tuesday in tandem with spot gold, which was trading higher by about the same amount.

With spot gold crossing above the $2,000 mark May 2 and back testing the level as support on Friday, bullish traders have been taking positions in ETFs in hopes that momentum will drive gold higher.

The price of gold has increased over 11% since the start of 2023 and ETFs that track the commodity and the gold mining sector have seen increased bullish flow. Since May 1, GLD, which tracks the price of spot gold, has seen $727.06 million in net inflows.

The bullish inflow into ETFs has also helped to increase the funds’ prices. GLD is up 11% year-to-date, and GDX, a gold mining equity ETF, has increased 23.52% over the course of this year.

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The GLD Chart: GLD reversed into an uptrend on April 27 and has since made a series of higher highs and higher lows. The ETF’s most recent higher high was formed on Thursday at $191.36 and the most recent higher low was printed at the $185.77 mark on Friday.

  • When GLD fell lower on Friday, the ETF back tested the 21-day exponential moving average as support and held above the level, which is healthy and bullish. On Tuesday, the ETF was working to print a bullish Marubozu candlestick, which suggests higher prices could be in the cards for Wednesday.
  • If GLD continues higher over the next few days and prints a higher high, the ETF may find resistance at the all-time high of $193.30 at least temporarily. If GLD can burst up through that level, a blue-sky run could be on the horizon.
  • Bearish traders want to see big bearish volume in and break GLD down from its uptrend with the formation of a lower low, or for the stock to top out under $192 and print a lower high.
  • GLD has resistance above at $191.36 and the all-time high and resistance below at $188.08 and $184.42.

Read Next: Gold Edges Higher; PayPal Shares Tumble Despite Upbeat Earnings

Photo via Shutterstock.

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