Furthermore, government data shows that long gold positions have surged while short wagers declined.
Gold assets look more attractive in a low interest rate environment as the precious metal is more competitive against assets that pay low interest, like bonds. Additionally, if the Fed holds off on a rate hike, it would suggests the economy is not as strong, which would also help gold attract safe-haven demand.
SPDR Gold Shares
Tom Lydon’s clients own shares of GLD.