July 03, 2008 at 2:00 pm by Tom Lydon
The weakness of the U.S. dollar seems to be giving gold its added glimmer, as gold prices closed $2 higher Wednesday, adding more value to related exchange traded funds (ETFs).
The precious metal is often used as a hedge against inflation. The going price today was $934 an ounce. As of the current economic picture, there are major factors supporting the rise in gold: global inflation and increased demand for emerging markets/countries, reports Trang Ho for Investor’s Business Daily.
Some technical analysts believe gold has a shot at retesting the $1,000 an ounce mark after this week’s rally, says Frank Tang for Reuters. Gold reached its all-time record of $1,030.80 on March 17.
ETFs that are basking in the golden glow:
- SPDRs Gold Trust (GLD), up 13% year-to-date
- iShares Comex Gold Trust (IAU), up 13.3% year-to-date
- Market Vectors Gold Miners (GDX), up 5% year-to-date
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