U.S. Treasuries were also strengthening after the release of the Fed’s June meeting, which eased speculation of rate hikes any time soon.
The SPDR Gold Shares (NYSEArca: GLD) gained 0.7% Thursday as bullion prices hovered around $1,339, a 16-week high. [Encouraging Technicals for Gold ETFs]
“Equities are getting hammered today, and we are seeing a flight to safety,” Frank Lesh, a trader at FuturePath Trading LLC, said in a Bloomberg article. “Concerns about Europe are coming back to the forefront.”
Gold has also been gaining ground this year as geopolitical volatility in Ukraine and Iraq sparked safe-haven demand and after the Federal Reserve signaled it will keep rates low, which spurred some inflation hedging.
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Tom Lydon’s clients own shares of GLD and TLT.