Gold futures dropped below a psychologically significant barrier yesterday, adding to its losing streak and taking exchange traded funds (ETFs) lower with it.
The yellow metal dropped below $750 an ounce for the first time in nearly a year, reports Morning Zhou for MarketWatch. But now analysts are saying the price may have finally bottomed after its longest losing streak in eight years.
Gold hasn’t closed a single session higher this month, and has fallen more than $90 since Aug. 28, and it’s now $250 below its record high above $1,000 that was reached in March.
Gold ETFs are a convenient, accessible way for investors to dabble in the precious metal, without actually purchasing physical futures.
There is no doubt that a gold-focused ETF offers an inexpensive way to town gold without buying physical gold or futures, and there is no need to learn how physical futures operate. Noble DraKoln for Forbes reports that what many investors do not realize is that the price to trade gold-tracking ETFs may actually exceed their convenience and that trading gold future contracts could be a better alternative given the right conditions.