Gold has done nothing in Canadian dollars really in the last 3 months.
It is a US dollar story. some new buyers of the ishares don't seem to understand this fact.
Gold was $606 Canadian in Dec 2005, it has only gone up to $750 Canadian in two years. Most of that 25% gain happened between Jan 2006 and july 2006.
That is why XGD has been in a down trend channel since the May 2006.
It hit the top of this long term down trend channel and backed off this week.
The cost of mining are going up faster than the price of gold.
The risk of XGD going down are way higher than it going up further, any significant mining company releasing a bad quarter will knock all the miners way down and XGD could be back at $56 quickly to it's resistance level.