Gold Stands Out With Blood In The Street
This afternoon, almost every major stock market index is trading lower on the session. Traders and investors are experiencing a very rare broad based decline. The one sector that is showing strength today is gold and the gold mining stocks. The SPDR Gold Trust (NYSEARCA:GLD) is actually trading higher by $1.88 to $161.25 a share. It is very important to note that gold has been weak since February 28, 2012 when it traded as high as $174.00 a share. Despite today's rally in gold the precious metal is still in a weak technical position on the daily charts. The catalyst for the rally in gold is simply due to more chatter that the Federal Reserve will now consider implementing another quantitative easing program after today's stock market decline.
Gold mining stocks are also rallying higher today. These stocks have been extremely weak as of late. Leading gold mining stocks such as NovaGold Resources Inc (NYSEAMEX:NG), Seabridge Gold, Inc (NYSE:SA), and Yamana Gold Inc. (USA) (NYSE:AUY) are all trading higher this afternoon. Please understand, all of these stocks are still in a weak technical position on the daily charts.