Buy GLD on a Pullback to $130

SPDR Gold Shares (NYSE: GLD) — We have been recommending this exchange -traded fund (ETF), which seeks to mirror the price of gold bullion, for over a year.

On Sept. 16, at $124, the Trade of the Day said: “An intermediate correction in July only temporarily interrupted the rising price of gold, and this week, GLD broke from a triple-top to a new high. The immediate target is still $130, but with new buying from central banks, the price could jump to $140.”

And, on Nov. 9: “With the recent breakaway gap, the possibility of a ‘currency war,’ and a rush to precious metals, our target is raised to $150-plus.”

I’ll still stick with that longer-term assessment. However, if the first line of support at $134 is penetrated, expect an immediate sell-off to $130 where new purchases should be entered.