ETFs tracking gold prices have fared relatively better in recent weeks. Gold futures were trading around $1,550 an ounce on Tuesday morning.
Last week, rising concerns about Greece defaulting on its debt and weak global growth data “drove investors into the perceived safety of gold,” wrote Daniel Willis and Nicholas Brooks at ETF Securities in the metals report.
“The market is now focusing increasingly on ‘when and how’ a restructuring will occur rather than ‘if’ it will take place,” they said. “Concerns about European sovereign risk together clear signs of softening global growth have caused investors to shun cyclical and risk assets and move into perceived safe havens. Gold has been a key beneficiary of this trend.”
SPDR Gold Shares (NYSEArca: GLD) was up 8.5% year to date through June 3, according to Morningstar.
Full disclosure: Tom Lydon’s clients own SLV and GLD.