“At a time of escalating geopolitical risk in the Ukraine, Russia, and the Middle East, with increasing volatility in equity markets and declining real yields investors are again looking to gold’s defensive properties to offset potential declines in more cyclical assets,” said ETF Securities.
Western nations are vowing to expand economic sanctions against Russia while U.S. Secretary of State John Kerry has overtly accused Vladimir Putin’s government of support the separatists behind the downing of Malaysia Airlines Flight 17, indicating that tensions in Eastern Europe could remain elevated in the near-term. That could lend support to gold as a safe-haven play.
SPDR Gold Shares
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of GLD and SLV.