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Trader Dan Norcini: GLD Bleeds Out; Weekly Gold Update

Dan Norcini, Trader Dan’s World, Released on 10/21/16

The one factor that gold bulls have had going in their favor during the recent selloff that occurred in gold and the gold mining shares in this month of October, has been the stellar performance of the reported holdings in the gigantic gold ETF, GLD. It has held rock steady in spite of the carnage witnessed, especially in the mining shares, even as the US Dollar has turned strongly bullish on the technical price charts. It has been a point of solace among the bulls to be able to see the resolve of some of their large sponsors holding firm in GLD.

That came to an abrupt end this afternoon as the numbers were released and they are ugly.

gld-holdings

In surprising fashion, given its stability for most of the month, it coughed up a bit over 16.6 tons of gold.

You can see the sharp drop on the chart.

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Dan Norcini is a professional off-the-floor commodities trader bringing more than 20 years’ experience in the markets to provide a trader’s insight and commentary on the day’s price action. His editorial contributions and supporting technical analysis charts cover a broad range of tradable entities including the precious metals and foreign exchange markets as well as the broader commodity world. He publishes his views on the markets in a detailed, fee-based service at Trader Dan’s World.

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