Gold Gets Slammed Early, Watch This Support Area
This morning, the popular and highly followed SPDR Gold Shares(NYSE:GLD) are trading lower by $6.50 to $176.34 a share. Spot gold is declining lower by nearly $50.00 to $1823.00 an ounce. The last time gold sold off so sharply the CME Group increased margin requirements for the precious metal. Traders should remember that in late April 2011 it took four margin hikes by the the CME Group before silver rolled over sharply. The margin requirements for gold have been increased twice since August 10, 2011. The GLD will have intra-day support around the $175.50 and $174.00 levels.
Some leading gold mining stocks that are trading lower today include Newmont Mining Corp.(NYSE:NEM), Agnico Eagle Mines LTD(NYSE:AEM), and Yamana Gold Inc.(NYSE:AUY). All of the gold miners were very extended and overbought on the daily charts. These stocks needed to pullback from the overbought condition, meanwhile, they still remain in good technical shape on the daily charts at this time.