Gold exchange traded funds struggle to regain lost ground as traders use bullion to hedge Eurozone concerns and renewed inflation concerns in the states.
The SPDR Gold Shares (NYSEArca: GLD), iShares Gold Trust (NYSEArca: IAU) and ETFS Physical Swiss Gold Shares (NYSEArca: SGOL) were about 0.1% higher Monday. The ETFs were strengthening for the second time in three sessions after the sell-off over the past two weeks.
COMEX gold futures were up 0.1% Monday, trading around $1,254 per ounce.
German investor optimism for the Eurozone in June dipped to 8.5, compared to economists’ average estimates of 13.3 and May’s 12.8 reading, Bloomberg reports.
“Worries about Europe are bringing in some safe-haven buying,” Fain Shaffer, the president of Infinity Trading Corp., said in the article. Prices will “remain range-bound as the rally in the equity market will continue to overshadow everything else.”
Additionally, gold futures are slightly up Monday as some investors bet on rising inflation in response to the strengthening U.S. economy and May jobs report. However, gains were capped since an improving economy would allow the Federal Reserve to continue scaling back stimulus measures.