Gold prices fell below $1,600 an ounce Thursday on lingering disappointment the Federal Reserve didn’t announce more easing measures aside from extending Operation Twist.
GLD has been encountering solid resistance at its 50-day exponential average every time the precious metal fund rallies to this technical indicator.
Fed chief Bern Bernanke on Wednesday said the central bank remains prepared to step in with further stimulus if the jobs market falters.
“The Fed leaving the doors open without actually going through them has disappointed the market,” said Michael Gayed, chief investment strategist at Pension Partners, in a Bloomberg report.
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Full disclosure: Tom Lydon’s clients own GLD.