There's not much to say about the Gold ETF today. It started auspiciously but finished down a little on yesterday's close, -0.14%.With the ADX (Average Directional Index) down near 10, this is clearly in non-trending mode.
Although no clear break in the chart pattern has occurred, volatility does seem to be picking up. So a break could be imminent. Key levels seem to be 131-136.
The impact of the Federal Reserves' decision will be important for the Gold ETF.
The Gold ETF is as much a play on currency movements as it is on the movement of the price of Gold in US$. If the Ozzie Dollar falls, the price of Gold in Ozzie Dollars is likely to rise.
So - a benign QE2 announcement would be negative for the Ozzie Dollar and good for the Gold ETF.
Let's wait to see how it plays out.
Cheers
Red
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