There is talk that India could be forced to lower its gold tariffs to curb rampant smuggling of the yellow metal. Estimates range from 150 tons to 250 tons of illegally imported gold to India just last year.
Gold is in the midst of seasonally strong period, which lasts until October 9. From July 12 through October 9 “gold bullion has gained an average of 3.63 per cent during the past 29 periods, outperforming the S&P 500 Index by 4.98 per cent. The trade has been particularly profitable in recent history, gaining in 14 of the past 17 periods for an average return of 5.44 per cent,” reports Don Vialoux for The Globe and Mail. [Favorable Seasonality Arrives for Gold ETFs]
SPDR Gold Shares
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of GLD.