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
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.