The precious metal funds started trending lower last month after Fed chief Ben Bernanke said the economy is sending mixed signals. His comments tempered speculation that more quantitative easing from the central bank is imminent. [Gold ETFs Pause on Bernanke, QE3 Talk]
However, the buy-and-hold investors in gold ETFs have remained steadfast.
“Investors in gold exchange traded funds are living up to their reputation for ‘stickiness’ as they have stuck with their holdings even as the price of bullion has retreated after hitting an all-time high in September 2011,” according to a recent Financial Times report. [Gold ETF Investors Unfazed by Pullback]
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Full disclosure: Tom Lydon’s clients own GLD.