Wait and See for GLD, But a Go Off This Low!

This morning we took a look at Gold and the Streetracks Gold Trust SPDR(GLD) on our latest www.thefredreport.com weekly conference call.
GLD has fallen as anticipated and come close to our downside target of 115 sooner than we expected. There are layers of support between 114 and 115 GLD. We expect these to be tested.

We note that weekly stochastics remain overbought in spite of this decline, and also note that the long-term trend remains up. This suggests that more consolidation, and not necessarily downside pressure, is needed before the next significant up move in Gold.

Over the longer-term, we continue to like Gold but expect to see choppiness over the next month or so. However, realize there is risk here -- Gold has outperformed commodities in recent weeks due to currency and market related fears, and could fall more if these fears abate.(more)