The rising value of the U.S. dollar is making precious metal exchange traded funds (ETFs) look a little less appealing.
Gold has now slumped to its lowest price in more than a year, following the government’s takeover of Fannie Mae and Freddie Mac, reports Feiwen Rong for Bloomberg.
The dollar index, meanwhile, rose to a one-year high, boosting the PowerShares DB US Dollar Index Bullish (UUP). UUP and SPDR Gold Trust (GLD) compared:
According to one commodity broker, the markets are torn between investing in gold ahead of the Indian wedding season and those selling gold as a result of the dollar’s strength.