Gold and bullion-related exchange traded funds have strengthened to their highest numbers in over two months as traders turn to safer bets on concerns over the possible impact of President Donald Trump’s policies.
On Monday, the SPDR Gold Shares (NYSEArca: GLD), iShares Gold Trust (NYSEArca: IAU) and ETFS Physical Swiss Gold Shares (NYSEArca: SGOL) were 1.0% higher as Comex gold futures rose 1.1% to $1,233.7 per ounce.
Gold miners also jumped, with Market Vectors Gold Miners ETF (NYSEArca: GDX) up 2.0% and Sprott Gold Miners ETF (NYSEArca: SGDM) 2.5% higher on Monday.
Meanwhile, the triple leveraged Direxion Daily Gold Miners Bull 3X Shares (NYSEArca: NUGT) surged 6.1% and the triple leveraged junior gold miners Direxion Daily Junior Gold Miners Index Bull 3x Shares (NYSEArca: JNUG) jumped 11.6%.
Concerns over Trump’s fiscal stimulus policies and his administration’s friction with traditional allies supported bullish bets on gold to the most in almost two months, reports Susanne Barton for Bloomberg.
“There’s still more uncertainty in the administration’s policies,” Phil Streible, a senior market strategist at RJO Futures, told Bloomberg. “The long gold position is the good trade to have on. We should see $1,250 soon.”