From The Slant:
Gold has pushed below $1,400 again. And despite a bump Thursday on a decidedly “risk-off” day for the market after poor China manufacturing data, gold prices are threatening to retest lows around $1,320 set in mid-April.
Of course, the rebound in gold prices off those April lows — about 12% in just several trading days — have some swing traders wondering if another leg up is in order.
Not quite.
Charles Sizemore of Sizemore Capital Management chats with me about the dynamics working against gold in this latest podcast, particularly the notion that somehow the selloff is less real because it involves “paper gold” as securitized via bullion-backed ETFs like the SPDR Gold Shares (GLD) or the iShares Gold Trust (IAU).
My two cents: Gold’s declines are real, the losses are real, and the risks to future declines are real, too.
