|Bid||141.34 x 1200|
|Ask||141.34 x 2200|
|Day's Range||141.05 - 141.78|
|52 Week Range||111.85 - 144.02|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.06|
|Expense Ratio (net)||0.40%|
Gold ETFs have been a shining through a gloomy market as investors poured billions of dollars into this asset category in face of rising uncertainty. According to the World Gold Council, investors funneled $2.6 billion into gold bullion-backed ETFs in July, raising their collective holdings to 2,600 tons, or the highest level since March 2013, the Wall Street Journal reports. Meanwhile, gold prices rallied 17% over the past three months and recently broke above $1,500 per ounce for the first time in six years.
Gold ETFs, including the SPDR Gold MiniShares (GLDM) and SPDR Gold Shares (GLD) , added to recent gains Wednesday as the yield curve again inverted, stoking fears of a recession. Gold is also catching a bid because some market observers believe with low inflation and the potential for a slowing economy, the Fed may step in and cut interest rates multiple times before the end of this year to go along with the rate revealed last month. Gold is believed by many investors to be inversely correlated with interest rates.
Gold, like other commodities, is often denominated in U.S. dollars. This means investors buying ETFs such as the SPDR Gold MiniShares (GLDM) and SPDR Gold Shares (GLD) typically want the greenback to weaken. Gold has long been used as a safe haven asset, particularly when the value of the dollar declines or investors fear market volatility and uncertainty, like in the case of a tariff war.
Whether it's investors' desire for safer assests, a world awash in low and negative interest rates or central banks gobbling up gold, bullion's rally is credible and based on solid fundamentals. “US-China trade negotiations continue to be a random walk,” said State Street in a recent note. In the second quarter, GLD saw inflows of more than $526 million while the fund's low-cost counterpart, the SPDR Gold MiniShares Trust (NYSE: GLDM), added nearly $83 million.
As Treasury yields continue to skydive, gold price levels could go through the roof as the scrambler for safe haven assets continues amid the latest market volatility as trade wars between the U.S. and China rage on. This could provide more gains for gold-focused exchanged-traded funds (ETFs) as analysts are predicting that the precious metal could shoot past the $2,000 per ounce price mark. The weakness in the U.S. dollar caused gold to climb, but the case for the precious metal is also coming from the bond markets.
Asian markets continue to bleed on increasing geo-political issues and slowing global economic growth. This, in turn, has been adding to the appeal of safe-haven ETFs.
Hong Kong Continues Its Slide Into Chaos With Chinese Troops On The Border Hong Kong stocks (NYSEARCA:EWH) are sliding again, down 15% in a month, as a second mass protest in the Hong Kong airport is threatening to shut down all international flights again. There is worry now that we could see another Tiananmen Square-type […]The post Market Morning: Hong Kong Chaos, Rates Plummet, Gold Soars, Hybrid Lull, Uber Bleeds appeared first on Market Exclusive.
Gold has had a strong run so far this year as geopolitical tensions swirl and bond yields go increasingly negative, and the party may not be over yet.
The collapse of interest rates worldwide to zero and below suggests a financial world that is dark and cold. Yet the plunge in bond yields to historic lows correspondingly results in high values for many assets.
The U.S. stock market stepped back from the cliff’s edge with a key reversal Wednesday. Please click here for an annotated chart of iShares 20+ Year Treasury Bond ETF (TLT) For the sake of transparency, the second and third charts were previously published and no changes have been made.
The recent market volatility and fears over a potential currency war between the U.S. and China have investors looking for a safe place to stash their cash while they wait out a period of uncertainty. The Grayscale Bitcoin Trust (Btc) (OTC: GBTC) is up 284.6%, the SPDR Gold Trust (NYSE: GLD) is up 16.6% and the INVESCO DB USD /BULLISH FD (NYSE: UUP) is up 3.8%.
Gold Briefly Breaks Through $1,500, JPMorgan Says Buy JPMorgan (NYSE:JPM) is coming out as a gold bull, though a little late in the game since gold (NYSEARCA:GLD) has been rising for nearly 4 years now since bottoming at $1,045 in December of 2015. The big bank had some choice words about the US dollar (NYSEARCA:UUP) […]The post Market Morning: Gold Breaks $1,500, World Watches Yuan, Bezos Sells, Fed Chairs Unite appeared first on Market Exclusive.
Gold prices on Tuesday finish regular trade modestly higher, marking a third straight gain a day after the precious metal extended its rally toward fresh six-year highs, amid escalating trade policy tensions between China and the U.S.
As stocks tumbled Monday on the back of escalating trade tensions between the U.S. and China, investors looked to familiar destination for shelter from the storm: gold and the related exchange traded funds. Gold ETFs, including the SPDR Gold MiniShares (GLDM) and SPDR Gold Shares (GLD) , are among the best-performing commodities ETFs this year and during Monday's sea of red for equity markets, gold ETFs stood tall. Gold ETFs are pushing to upside amid increased expectations of a U.S. rate cut, even as some investors locked in profits from bullion’s recent rally.
As the capital markets were sent in a daze following the news that China would retaliate after the latest tariffs by the U.S., investors rushed to safe havens like precious metals. In particular, this market volatility is paving the way for gold gains. The volatility have been kind to gold prices as fears of a global economic slowdown are forcing investors to allocate capital into safe-haven assets like precious metals.
As China devalued its currency as a retaliatory move against Trump's fresh tariff threats, these asset classes and ETFs could be in the spotlight.
The demand for gold rose 8% in the second quarter, according to the World Gold Council. Central banks and ETF buyers helped drive that demand, taking in $2.5 billion in net new inflows thus far this year. Matthew Bartolini of State Street Global Advisors joins Yahoo Finance’s Adam Shapiro and Julie Hyman to discuss.