Gold futures have been surging higher over the past three trading sessions. Traders that do not have access to the futures market can track and follow the SPDR Gold Shares (GLD). This popular ETF has climbed higher by more than $4.50 since May 21, 2019. The precious metal seems to be catching a serious bid since the stock market selloff has escalated late last week. Surprisingly, today the markets are bouncing higher and gold is still catching a very strong bid with spot gold up by $12.90 to $1324.00 an ounce. This tells me that investors want the precious metal for security and safety. It also signals to me that they do not really believe that today's stock market bounce is sustainable. Gold is the ultimate investment vehicle in times of fear.
Traders and investor should note that the GLD is getting short term overbought on the daily chart. This tells me that the pattern over the next week or two will be extremely important. Should a bullish pattern form then it could signal a potential move up in the GLD to the $130.00 level and possibly more. Remember this old rule, the best moves come from failed moves. Spot gold and the GLD just broke out of a daily chart downtrend and that is the way the markets talk to us.
