So typically gold is thought of as a safe haven play and rarely sees any, worthwhile gains unless there is some level of fear in the markets. Right now there is absolutely no fear that the overall markets are in any trouble. The Volatility index ETF
Today we will take a look at the ETF for Gold
Well, the markets have obviously headed higher and many people feel that it is getting a little over done. What many analysts are noticing is that some big money is making the switch over to gold. The idea here is that the markets are about to experience some kind of turbulence and investors want to be ahead of the curve.
Now there is no way to know for sure if the markets will show any signs of weakness but this is a great example of how the so called "smart-money" moves ahead of the masses. If they are right then they have essentially saved themselves as much as 12% getting a discount for buying when no one else was interested.
In the mid-term the major resistance area is at the $130 number. This has been a resistance area for almost four years now. Technical traders would have no reason at this point to think that it wont act as some kind of resistance once again.