GLD – The Real Reason Gold has No Support

On Thursday, when the market tanked, television media made a fuss about the lack of safe haven demand for gold. Readers of this column should not have been surprised though, given my regular reminders about the importance of the strengthening dollar against gold and the fact that there was not much tangible danger to run away from Thursday. Though the media was not perfectly accurate about the move in gold, as the SPDR Gold Trust (NYSE: GLD) did rise on the day, I continue to dissuade investment in gold and the SPDR Gold Trust (NYSE: GLD) near-term. My reason is the same Fed rate outlook and strengthening dollar driving the commodity since peace broke out between Russia and Ukraine. While it’s possible capital could scare from stocks near-term, I’m not sure it wouldn’t choose cash over gold given the dollar drive. I would not consider a long position in gold before any significant terrorism catalyst or other unexpected event catalyst gave good cause for it. See the full story on gold here.