What's Next for Gold ETFs? | ETF Trends

Gold prices have succumbed to the overall effects of an ailing economy and investors seem to follow the trend of shorting gold and related exchange traded funds (ETFs).

On Friday, gold futures closed slightly higher on flight-to-safety buying, reversing an eight-day losing streak, reports Allen Sykora for The Wall Street Journal. That wasn’t the case earlier this week, though, as even when the market sank, gold followed suit.

One expert said that this time, gold is being driven higher by two things: equities weakness and physical demand.

But is this one-day rally going to last?

On the “No” Side…It is thought that the drop in gold is a function of how weakly other markets are performing and a deleveraging effect has been attributed to anything related to the financial markets. Gold is also traditionally a commodity used in Jewelry or in electronics. Both sectors have been doing poorly under diminished demand.