NEW YORK (TheStreet) -- Investors got behind gold Friday for good luck and, in some cases, just good old protection.
SPDR Gold Trust (GLD) an exchange-traded fund that tracks the price of the yellow metal, rose 1.2% by midday. And a majority of investors on StockTwits.com are calling for more gains. Sentiment on GLD is 69% bullish.
$GLD This has runner written over it heading into the weekend, I think it surprises over the weekend and breaks out of the triangle
- InvestingJungle (@InvestingJungle) May. 2 at 10:59 AM
Some investors are buying gold to hedge against any market downturn spurred by geopolitical risks -- namely the ongoing tensions between the West and Russia over Russia's annexation of the Ukraine's Crimea region. President Obama and German Chancellor Merkel will hold a press conference today to discuss the West's sanctions of top Russian officials and other measures taken to curb threats of Russian expansion in the former soviet block.
Other investors see reason to be bullish gold because of growing demand in the world's second largest gold market. The Wall Street Journal reported today that gold demand has risen in India -- the number two market for the yellow metal. Demand is typically strong on today's Hindu holiday, Akshaya Tritiya, a holy day when buying precious metals is considered good luck. (However, early reports in Indian newspapers suggested jewelers were not impressed with sales.)
The rise is Indian demand is helping to offset some of the falling demand for gold in China, the top gold consumer. Gold prices fell hard earlier this month on news that Chinese demand for gold was inflated by business efforts to use gold as collateral -- and not demand for jewelry and other gold items. The gold ETF is down nearly 7% since its 2014 high on March 14. It is down nearly 13% in the past 52-weeks. But many investors on StockTwits now believe a bottom is in for gold.
At the time of publication the author had no position in any of the stocks mentioned.
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.