Fed Comments Dent Gold Mining ETF

GLD is now trading below its year-to-date breakeven mark

Jake Scott

Deputy Editor

Mar 7, 2023 at 12:25 PM

Gold mining exchange traded fund (ETF) SPDR Gold Shares (GLD) is pulling back, after Federal Reserve Chairman Jerome Powell told the Senate banking panel that more interest rate hikes are needed in order to tame inflation.

Last seen down 1.4% to trade at $169.20, today's pullback has GLD trading back below its 80-day moving average. After last week snapping a five-week losing streak, the shares are now trading just below their year-to-date breakeven mark, and now stand 9.3% lower over the last 12 months.

GLD Chart March 72023

Now could be a good time to speculate on the security's next move with options, as premiums are attractively priced. This is per the ETF's Schaeffer's Volatility Index (SVI) of 14%, which ranks at the low 5th percentile of readings from the last 12 months.

Furthermore, the security's Schaeffer's Volatility Scorecard (SVS) of 72 out of 100 means GLD has exceeded option traders' volatility expectations over the past year.

Follow @Schaeffers

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released!

Special Offers from Schaeffer's Trading Partners