- Market Forecast Commentary -
June 14, 2011 (FinancialWire) -- Key indicators such as the SPDR Gold Trust (AMEX: GLD) indicate a bullish near-term 
It was a bumpy ride lower for gold during the first several weeks of May, thanks to a widespread commodities sell-off and news of a high-profile investor unloading his stake in the popular "safe haven" investment. However, a recent report revealed that investment demand for gold in China surged to 90.9 metric tons during the first quarter, establishing the emerging market as the world's top buyer of the precious metal.
Amid constantly simmering Chinese inflationary concerns, ongoing sovereign debt drama in Europe, and economic reports signaling a rough patch in the U.S. economic recovery, it seems that the fundamental backdrop still supports a bullish case for gold. In fact, the SPDR Gold Trust held up remarkably well in the face of a resurgent dollar last week, with the shares still lingering comfortably north of support at their 40-day moving average.
Even more compelling, the 50-day buy-to-open put/call ratio for gold is turning higher from its near-term lows. In recent years, similar rebounds in this ratio have coincided with periods of bullish price action for the ETF.
Read more: http://www.benzinga.com/press-releases/11/06/c1167263/gold-sector-outlook#ixzz1QQvaDHh5