SPDR Gold Trust's most recent trend suggests a bullish bias. One trading opportunity on SPDR Gold Trust is a Bull Put Spread using a strike $113.00 short put and a strike $108.00 long put offers a potential 15.21% return on risk over the next 27 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $113.00 by expiration. The full premium credit of $0.66 would be kept by the premium seller. The risk of $4.34 would be incurred if the stock dropped below the $108.00 long put strike price.
The 5-day moving average is moving up which suggests that the short-term momentum for SPDR Gold Trust is bullish and the probability of a rise in share price is higher if the stock starts trending.
The 20-day moving average is moving up which suggests that the medium-term momentum for SPDR Gold Trust is bullish.
The RSI indicator is at 55.74 level which suggests that the stock is neither overbought nor oversold at this time.
To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here
LATEST NEWS for SPDR Gold Trust
7 Low-Cost Gold ETFs
Wed, 19 Sep 2018 17:34:26 +0000
Gold investors typically tout several virtues of the yellow metal: It hedges against inflation, they say, it's an uncorrelated asset that doesn't move with the stock market and it can grow in value when national or even global uncertainty is high. Those features help build the bull case, which you can leverage via gold exchange-traded funds (ETFs). Gold admittedly hasn't given investors much to work with for years. After a decade-long run topped out in 2011 above $1,850 per ounce, prices slammed back to earth and have been stuck in a range between $1,100 and $1,300 since 2013. Still, some people look to gold investing to diversify their portfolios, and aggressive investors can try to squeeze profits out of short-term swing trades. We recommend that if you do try your hand at this commodity, you understand the ins and outs of investing in gold, make it a small portion (5%) of your portfolio and use ETFs, for several reasons, including liquidity, low expenses and ease of use. Here's an introduction to seven low-cost gold ETFs that offer varying types of exposure to the precious commodity. This list includes the most ubiquitous gold ETFs on the market – funds you typically can read about in just about any daily commodity wrap-up – as well as a few that aren't as well-covered by the financial media but might be better investments than their high-asset brethren. SEE ALSO: The 15 Best ETFs to Buy Right Now
Contrarian Investors’ Positions after BAML Survey
Wed, 19 Sep 2018 15:35:16 +0000
A record number of fund managers in the BAML (Bank of America Merrill Lynch) September survey believe that gold (IAU) is undervalued, trading at a 17-year low. The SPDR Gold Trust ETF (GLD) has fallen ~8.5% year-to-date and ~13% from its April peak. It’s usually considered a safe-haven asset in which investors take refuge in the event of uncertainty and risk. However, gold has not been able to draw safe-haven bids so far in 2018 since the strong US dollar (UUP) keeps weighing it down.
How Will the US Dollar and Gold React amid Escalating Tensions?
Wed, 19 Sep 2018 11:32:00 +0000
In Could Trade Tensions Support the US Dollar Again? we discussed how the dollar makes a comeback after trade tensions seem to escalate. Year-to-date, gold prices have fallen 8.6% while the US Dollar Index has risen 4.8%. As the news of the new round of trade tariffs hit the market, gold prices fell while the dollar rose.
Why Ray Dalio Thinks China Isn’t Concerned about Tariff Levels
Wed, 19 Sep 2018 11:31:25 +0000
Which Sectors Are Worried about Rising US–China Trade Tensions? Ray Dalio, the billionaire founder of world’s largest hedge fund, Bridgewater Associates, noted on September 10 that China (FXI) isn’t really concerned about the import tariffs imposed and proposed by the US (SPY)(IVV). During his interview on Squawk Box, he added that China is more focused on its ongoing relationship with the United States.
Can Central Banks and Governments Contain the Next Recession?
Tue, 18 Sep 2018 13:40:02 +0000
It has been a decade since the collapse of Lehman Brothers. While governments loosened their purse strings, central banks also took a dovish approach by lowering interest rates and using other monetary policy tools. Fast forward to 2018, the tools available for central banks and governments look limited.
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