GLD, the biggest gold ETF, may be signaling it hit a near-term bottom.
The SPDR Gold Shares ETF was down about 0.3 percent Monday, as gold declined. GLD at 114 is off Friday's high and close of 114.72. It's down about 2 percent this year but more than 9 percent in the past three months. Gold futures have also fallen 9 percent in the period.
Traders are betting GLD may have hit a near-term bottom after it surged on Friday.
"It broke below a prior low and broke above the highs of the week," said Scott Redler, partner at T3Live.com. "Usually an outside reversal trades below a prior low and closes above a prior high. This traded below a prior low and closed above an almost two-week high."
Redler, who follows short-term techncials, said he's long GLD but it's too early to declare a positive trend even with the bullish signal. "The downtrend has been going on for nearly two years now. It could be a counter move for traders but it still has a lot to prove," he said.