Gold Dips, However, It Is Still The Golden Investment
This morning, spot gold is declining lower by $21.00 to $1838 per ounce. Gold has been extremely volatile over the past month. Many traders and investors have been fleeing the precious metal due to rumors of another margin hike by the CME Group. So far, the CME Group has increased margins for gold on two separate occasions since August 10, 2011. Traders may remember, it took four separate margin hikes in silver to cause the price to decline sharply. It is important to note that gold has been in a ten year bull market, therefore, a correction in the precious metal will actually be beneficial as the chart is somewhat overbought and extended on the larger time frames. This morning, the highly popular SPDR Gold Shares are trading lower by $2.38 to $178.26 a share. The GLD will have intra-day support around the $176.00 and $174.50 levels intra-day.
Gold mining stocks are also pulling back today with the precious metal. The highly popular Market Vectors Gold Miners ETF (NYSE:GDX) is trading lower by 0.72 to $65.09 a share. Traders can watch for some short term intra-day support around the $64.00 area. Other leading gold mining stocks that are pulling back include Agnico Eagle Mines LTD (NYSE:AEM), Newmont Mining Corp.(NYSE:NEM), and Randgold Resources LTD(NASDAQ:GOLD).