Gold - Here We Sit Brokenhearted

I think you may know the rest of this two sentence child’s poem that I learned from my best friend John, aka “Stiff” because he later worked at a funeral home. I simply cannot repeat it here, but it’s apropos with regard to where we sit in the SDPR Gold Trust (NYSE: GLD). Trading in the SPDR Gold Trust (NYSE: GLD) has been volatile over the first few days of September thanks to three dynamic factors at play today. The curious actions and announcements emanating out of Moscow and Kiev have had gold teetering back and forth, but I’m in agreement with President Obama’s skepticism about the sincerity of Moscow’s peace interest. The ECB’s decision to cut interest rates and initiate quantitative easing weakens that security against the dollar, which again inflicts pain on GLD holders. In South America, Argentines are demanding dollars in the wake of the nation’s technical default. Each of these factors are helping to fuel an already strengthening U.S. dollar, and at the same time, they are pressuring the GLD. So here we sit broken hearted, and somewhere in Philly I know John is laughing. Read GLD – Here We Sit Brokenhearted here.