Gold in Starting Blocks Ahead of Jobs Data (GLD) (IAU) (SLV)
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Popular gold ETFs, SPDR Gold Shares ETF (NYSE: GLD) and iShares Gold Trust ETF (NYSE: IAU) are moving higher early on Thursday. The rally takes place as the spot price of gold once again tests resistance at $1800 per ounce. For the last few weeks gold has been consolidating around $1775 in preparation for an attack. Traders say a breakout, if successful, may spark another leg higher toward all time highs above $1900 per ounce.
However, bears aren't likely to give up $1800 without a fight, but eventually they could find they are fighting a losing cause, especially considering Fed Chairman Ben Bernanke recent push to flip the dollar-printing switch on high in an effort to create jobs at the expense of inflation, which remains subdued overall.
Since late July, the dollar index has declined from 84 to below 80, with strong gains seen in the EUR/USD.
Like gold, silver and iShares Silver Trust ETF (NYSE: SLV) have also been in consolation mode lately, with the spot price hovering just under $35 per ounce. A breakout would target February highs under $38.
Gold traders see tomorrow's jobs data as a minor inflection point. While it will probably not tip Bernanke's hand either way, jobs are the Fed's latest obsession, and positive data, or any lack thereof, is certainly a high priority for gold investors. Economists see gains of 115,000 jobs in September.
However, bears aren't likely to give up $1800 without a fight, but eventually they could find they are fighting a losing cause, especially considering Fed Chairman Ben Bernanke recent push to flip the dollar-printing switch on high in an effort to create jobs at the expense of inflation, which remains subdued overall.
Since late July, the dollar index has declined from 84 to below 80, with strong gains seen in the EUR/USD.
Like gold, silver and iShares Silver Trust ETF (NYSE: SLV) have also been in consolation mode lately, with the spot price hovering just under $35 per ounce. A breakout would target February highs under $38.
Gold traders see tomorrow's jobs data as a minor inflection point. While it will probably not tip Bernanke's hand either way, jobs are the Fed's latest obsession, and positive data, or any lack thereof, is certainly a high priority for gold investors. Economists see gains of 115,000 jobs in September.
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