Safety Net Hunt Leads Investors to Gold ETFs
September 22nd at 3:33pm by Tom Lydon
Investors nervous about the government’s plan to extend a lifeline to embattled financials flocked to safe havens today, including gold and its related exchange traded funds (ETFs).
The price of the precious metal jumped nearly 4% on Monday, report Frank Tang and Jan Harvey for Reuters. One gold options floor trader said he wouldn’t be surprised to see the price jump to $950 by the end of the week.
Another traditional factor in soaring gold prices has been dampened, though: after the price increase, demand in India has almost vanished. It’s prompting dealers and retailers to offer discounts, Biman Mukherji for Reuters reports. The wedding season in India is a typical time for the price of gold to soar, as brides receive the metal as a gift. Strong buying was expected to hold until October because of a series of Hindu festivals, as well.
- SPDRs Gold Shares (GLD), up 8.3% year-to-date
- iShares Comex Gold Trust (IAU), up 8.1% year-to-date
- PowerShares DB Gold (DGL), up 6.2% year-to-date
