Have you seen what’s happening in the SPDR Gold Trust (GLD), the world’s biggest physical gold ETF?
It sure looks to me like investors are backing up the truck. They’re using the GLD to add to gold positions in a big way.
Recently, the gold held by the GLD soared to 838 metric tons. That’s 26,942,330 troy ounces.
And it’s not just the GLD. Swiss firm MKS reported Tuesday that, globally, ETF holdings of gold rose by 180,000 ounces. That’s the largest gain in two months.
This is happening even though economic optimism in the U.S. and Europe are at or near record levels.
Related story: Optimism About U.S. Economy Hits Post-Recession High
Partly this has to be gold’s price action. It seems to be breaking out. Investors are positioning for that.
Also, inflation continues to heat up. Investors are getting ready for that, too.
And they can probably see the same long-term, big bull cycle in gold that I can.
But really, the latest short-term factor in gold is rising geopolitical tensions. On Tuesday, I told you how President Trump rattled the markets with talk of taking care of the "problem" that is North Korea.
Tensions aren’t simmering down. The Russians don’t seem to like U.S. finger-wagging over Syria, either.
Who knows what the next day’s news will bring?
I’ll tell you this: If gold ends this week above $1,262, that’s a breakout in price terms … AND a close above gold’s 200-day moving average.
And if that happens, that’s a whole new ballgame. Technical traders will buy-buy-BUY!
Do you think money is pouring into the GLD now? Just wait and see what happens if we get that weekly bullish close.
(And if you want my detailed instructions about what to buy … and when … click here.)
All the best,