In the aftermath of Brexit , Gold has hit a new 2 year high of 13oos as we speak. Beside trading spot gold which involve margin and risk of margin call , exchange traded funds ( Etfs) are another asset class we can look to invest ( for buy and hold) to benefit from the rising gold price. SPDR Gold Share (GLD) and VanEck Vectors Gold Miners ETF (GDX) are 2 such etfs which we can look at .
SPDR Gold Share (Ticker Symbol: GLD)
This Etf seeks to reflect the performance of spot gold price. It is both listed on SGX and NYSEArca in USA . Both image refers to the GLD listed on SGX. In the first image , Since 10 February this year , when GLD broke above its well define downtrend line which was in place since 2013 , it has not look back and has been on a uptrend since then.
In the Second image , GLD has been in a well define uptrend since January this year , if it pullback to the uptrend lower channel support line the next time around US$119 level, it may present a good risk reward entry level .
VanEck Vectors Gold Miners ETF (Ticker Symbol : GDX)
VanEck Vectors Gold Miners Etfs (GDX) seeks to replicate the price performance of NYSE Arcra Gold Miners Index . It is listed on NYSEArca in USA . When Spot Gold rises , it tends to positively impact the share prices of Gold Miners in general . Hence this Etf is a good proxy to the price of Spot gold . In the first image , Since February this year , GDX has broken above its well define downtrend line which was in place since 2011 , and been on a uptrend since then.
In the Second image , GDX has been in a well define uptrend since late January this year , if it pullback to the uptrend lower channel support line the next time around US$24-US$25 level, it may present a good risk reward entry level .
