does GLD follow GC gold future?

Discussion in 'Metal Futures' started by newguy05, Aug 19, 2008.

  1. Does GLD follow the gold futures in term of percent movement very closely? thanks
     
  2. No, no, no. GLD follows Golden Delicious AAPL!
     
  3. bump, can anyone confirm. thanks
     
  4. In my second month trading, I remember I put the gold futures on my Anvil LII and sat there watching how GLD moved with the last-trade of the gold front month futures contract, I was counting in my head the difference in the price and when it got really far away, my theory was that it would revert quickly - it looked like GLD was a little slow, even, then I remember seeing a HUGE divergence and I bought 300 shares (I was still trading 100 shares back then, a total newbie) of GLD... lol, what happened was the gold futures contract I was watching was pit traded and the pit closed, so the price stopped changing - I nonetheless thought there was some absurd huge arbitrage opportunity. Somehow I made a few bucks on the trade anyway.
     
  5. you can still find some "arb" from time to time

    ( i.e this am the opening GLD trades were almost $1.00
    higher than the theoretical value of GLD )

    * note I sold some and locked in a profit buy buying futures ...
    however I was not able to continue to sell anymore and lost
    some money chasing futures a few $ higher )

    < cannot complain I am having a ( so far knock on wood )
    a great week and a great yr >

    :)
     
  6. Sweet info. Thanks for sharing.
     
  7. Ok so sounds like they move pretty closely similar to uso and oil. Thanks

    I closed out my entire uso short position for a nice chunk of change as it's getting close to the 200MA. Looking to make a shorter term play on gold now. The drop so far has been dramatic from a technical standpoint.