Another round of global uncertainty is bolstering the gold trade, with the precious metals miners and sector-related exchange traded funds shining in the equities space.
On Wednesday, the Sprott Gold Miners ETF (NYSEArca: SGDM) rose 2.9%, iShares MSCI Global Gold Miners ETF (NYSEArca: RING) gained 2.5% and Market Vectors Gold Miners ETF (NYSEArca: GDX) increased 2.1%.
Meanwhile, the SPDR Gold Shares (NYSEArca: GLD), iShares Gold Trust (NYSEArca: IAU) and ETFS Physical Swiss Gold Shares (NYSEArca: SGOL) were up about 1.4% Wednesday as Comex gold futures advanced 1.3% to $1,092.9 per ounce.
Gold bullion was trading around a two-month high Wednesday after geopolitical tensions in the Middle East and North Korea’s claim of a successful hydrogen bomb test triggered risk-off sentiment and fueled safe-haven trades.
In the Middle East, tensions are rising after Saudi Arabia executed a prominent Shi’ite cleric Saturday, which caused widespread unrest in Shi’ite Muslim countries and forced Saudi Arabia to cut ties with Iran after Iranian protesters rushed the embassy in Tehran. [Geopolitical Risks Renew Gold ETF Trade]
Global stocks, notably Asian markets, also reeled in response to North Korea’s claimed hydrogen bomb tests.