Gold exchange traded funds (ETFs) are on the rise, as gold closed above $800 an ounce, up 2%, for the first time since Jimmy Carter was president. Gold is up 27% this year due to the Federal Reserve interest rate cuts to lessen the strains on the financial markets, which helped send the dollar down to record lows against the euro, reports Pham-Duy Nguyen for Bloomberg.com. The lingering issues with the credit and subprime fallout are sending investors to the precious metal for a safe haven during unstable markets.
Gold delivery for December rose $14.80 or 1.9% to $808.50 an ounce. Futures went as high as $810.70 up 2.7% this week. Proof is in the ETFs and their year-to-date performance:
- streetTracks Gold Shares(GLD) up 26.4%
- iShares Comex Gold Trust(IAU) up 26.4%
- PowerShares DB Gold(DGL) up 31.4%, since its January launch.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.