Gold took a sharp move down last week reaching levels not seen since early December.

GLD

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The SPDR S&P Gold ETF (GLD) closed the week at $133.58, down nearly 4% from its high on December 31 before bouncing back slightly in today’s trading.  Where it goes next depends on who you ask.

Some technical analysts point to the fact that GLD moved below 10-day and 50-day moving averages indicating a further move downward.

Gold bulls point out that the metal has experienced several pullbacks on the way up and this is just a buying opportunity.

Either way, an improving U.S. economy offset by an uncertain job outlook and a continuing debt crisis in Europe will likely result in continued volatility for GLD in 2011.

At $57 billion in assets, GLD is one of the world’s largest exchange traded funds and tracks the spot price of gold by buying and storing physical gold bullion.   The fund’s expense ratio is 0.40.

For a complete list of commodity ETFs, please visit the ETF Directory.