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Investing in gold has never been easier than it is today. Check out this article to learn more about gold ETFs and other ways that you can add gold to your portfolio.
After four days of massive gains in the stock indices, markets pulled back on Friday, giving gold a boost, as renewed fears that the coronavirus may be continuing its insidious spread are taking over.
As more investors turn to ETFs to access the markets, gold ETFs have become a go-to choice to easily and quickly gain exposure to the precious metal.
Let's look at some ETF strategies that can be followed as the rapidly-spreading coronavirus eruption is expected to disturb global economic growth.
Due to the coronavirus epidemic, gold ETFs, such as the SPDR Gold Shares (GLD) and the SPDR Gold MiniShares (GLDM) , are rallying on safe-haven buying to start 2020. In its ongoing contagion, the coronavirus has now shown 31,211 validated cases in China and a minimum of 637 deaths as of Friday morning, although there is a possibility that the rate of infection is slowing said World Health Organization officials on Friday. “In the meantime, options trading has picked up, with puts trading at six times the expected pace today,” reports Schaeffer's Investment Research.
Gold prices have been relatively muted as investors are reading into Federal Reserve Chairman Jerome Powell’s neutral tone on the economy and the remaining wild card in the markets known as the coronavirus. Gold prices are slowly facing downward pressure as a risk-on sentiment creeps back into the markets following lesser cases of the coronavirus occurring. Tuesday is the first day of Powell’s testimony before Congress.
Gold is the granddaddy of precious metals, at least from an investment perspective. But other precious metals such as platinum and silver have their own place in a savvy investor’s portfolio. They are tangible assets with intrinsic value. The Federal Reserve cannot print more of them. Both gold and platinum have their own unique qualities. In this […]
As the coronavirus outbreak continues to be the wild card in the markets, the safe haven of precious metals is in high demand, especially for exchange-traded funds (ETFs) that are backed by gold. ETFs have been stockpiling gold as more coronavirus news continues to invade the financial markets. The ETFs trade like a stock but track the price of gold, with the commodity put into storage to back the shares.
While the U.S. markets seem to push the coronavirus outbreak from the forefront of their worries, China continues to struggle with its effects as more cases of the virus surface and claim more lives. This is pushing precious metal prices like gold steadily higher. Asian and European shares were higher overnight as traders and investors at least for now have pushed aside the coronavirus outbreak in China.
As more investors turn to ETFs to access the markets, gold ETFs have become a go-to choice to easily and quickly gain exposure to the precious metal. According to DataTrek research, ETF investors have been a key driver of the 18.4% full-year gain in gold prices, even as global demand for the precious metal dipped 1%. While volatility caused the markets to swing and global downturn concerns pushed investors into safe-haven plays, ETF holdings of physical gold increased 16% to 2,886 tons, or an all-time high.
Investors in exchange-traded funds reacted to a higher price for the precious metal, and helped push it even higher, a trend one analyst expects to continue.
Gold ETFs, such as the SPDR Gold Shares (GLD) and the SPDR Gold MiniShares (GLDM) , were among last year's best-performing commodities funds, a theme that is extending into this year. New data from the World Gold Council (WGC) highlight some of the catalysts behind gold's stellar 2019 and why the yellow metal, GLD, GLDM and related products can continue delivering for investors this year.
The Federal Reserve decided to keep rates unchanged on Wednesday and this could be gold’s main driver going forward if the data-dependent central bank deems the economy healthy enough. This could support gold prices even if the market experiences a lull in precious metal purchases after the coronavirus craze eventually fades. Amid the outbreak, it was risk-off for investors as they piled into safe havens like bonds and gold.
Airline Stocks Plummet Over Coronavirus Fever Fever Coronavirus is taking its toll, if not on actual people (it’s pretty mild so far), then on airline stocks. United Airlines (NASDAQ:UAL) in particular is being smashed, down 16% since news of the Wuhan outbreak broke. Airline traffic has plummeted as travelers to Asia fear being infected. American […]The post Market Morning: Airline Coronavirus Fever, Gold Jumps on Fed Speak, Though UPS Unfazed appeared first on Market Exclusive.
Thanks to as much as a 500-point drop in the Dow Jones Industrial Average in Monday’s trading session, it was risk-off for investors as they piled into safe havens like bonds and gold. Gold was on a path of bearishness after a U.S.-China “phase one” trade deal put the risk back into the markets. “After almost three weeks of consolidation, gold has now pushed higher on risk-aversion as the Coronavirus position worsens and the markets move away from risk,” said Rhona O’Connell, head of market analysis for EMEA & Asia at INTL FCStone, in a daily note.
In a market that has been steadily climbing despite impeachment proceedings against President Trump, a roller-coaster ride due to tariffs and a trade war with China, and generalized global uncertainty, volatility has become relatively complacent. The VIX or CBOE Volatility Index, which is commonly referred to as the "fear gauage", and is used by many traders and analysts as a measure of how carefree investors are, has been moving toward 12, and bouncing back up, causing periodic disruptions to stocks in this long running bull market since November. Since last week the VIX has bounced 32%, corresponding to a drop in stocks, as investors express concern over the Chinese coronavirus, which shows new cases daily.