“A lot of people released capital from the fixed income space as well as the equity space, so the money has to go somewhere — it might be a hedge,” Eduardo Ramos, founder of Freedom Advisory, said in the article.
Additionally, some argue that the weakness in the commodities market is only temporary and could rebound. [After Sell-Off, Commodity ETFs Could Turn Around]
“For now, however, it appears as if resources could continue their strong performance for at least the near-term and hopefully much longer,” Frank E. Holmes, chief executive of U.S. Global Investors, said in the article.
For more information on the commodities market, visit our commodity ETFs category.
Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own shares of GLD.