Koos explains that instead of focusing on technical indicators, people are more inclined to trade on fundamental factors like government debt, a weak U.S. dollar and an eventual rise in inflation. [iShares: The Bigger Threat Than a US Government Shutdown]
“The great majority of the investors today are long-term holders who own gold to hedge against growing U.S. and other developed-economy sovereign debt and currency-debasement risks,” Brooks added. “As those risks rise, we expect flows will rebound again.”
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Max Chen contributed to this article.