Gold ETF's post some outflows but there is a key technical support close by
(Kitco News) - Gold ETF's are showing some more outflows this week. Gold Shares (GLD:NYSE) saw an approximate $288.6 million dollar outflow that's a 0.5% decrease week over week (from 359,600,000 to 357,800,000).
If we look at the GLD weekly chart, it is clear to see there has been some capitulation since the high of $194.45 was hit back in August 2020. Looking closer at the data, one thing of interest is the lack of traded volume. This coupled with where the price is in relation to the volume at price indicator (right side bell curve) shows that there could be some support. If there is to be a break lower there would need to be some volume to take the price through the $158.60 support.
There is also a trendline that might possibly provide some support as the recent bounce in the gold price over the last 2 session does not seem to be fully reflected in this chart. On the downside, if the level does happen to break the next major support is some way off at $145.52 but there is the matter of the psychological $150 in the way first. On the topside, the next major zone is the previous wave high at $164.15 and beyond there is another resistance at the $166.05 area which was a formidable support zone on 30th November 2020.
The rise in the U.S. yields has caused the yellow metal lots of problems recently. The greenback has been on a bit of a comeback as both stock and fixed-income rates rise. The emergence of Bitcoin could also be arguably brought into the list of reasons that gold has lost its shine recently but could there be bargain hunters lurking around these low levels.