Gold Remains Brittle In The Near Term
This morning, most of the leading gold and gold mining indexes are trading higher to start the day. As you may know, the gold sector has been extremely weak since late February 2012. At that time, the highly popular SPDR Gold Shares (NYSE:GLD) were trading as high as $174.00 a share. Today, the GLD is trading higher by $1.62 to $159.92 a share. The daily chart of GLD still remains very weak as the price is trading below the daily chart 50, and 200 moving averages. This formation puts the GLD in a weak technical position. The next near term daily chart support area for the GLD will be around the $154.75, and $150.00 level. Short term traders can watch for intra-day resistance around the $160.00, and $160.60 levels.
Many of the leading gold mining stocks are also catching an early morning bid higher. Leading gold mining stocks such as Randgold Resources Ltd. (NASDAQ:GOLD), Goldcorp Inc. (NYSE:GG), Yamana Gold Inc. (NYSE:AUY), and Newmont Mining Corporation (NYSE:NEM) are all trading higher today. Please understand, while these stocks are trading higher at the start of the session the daily charts are still weak in the near term.