Even if rates rose a couple basis points, the continued low rate environment is good for gold, which does not pay a yield and would struggle to compete with yield-generating assets when rates rise.
“Gold, which is widely considered an inflation hedge, has yet to become attractive to investors, Burkly said. Thanks to low oil prices and sluggish economic data, inflation doesn’t look like it’s going to be picking up anytime soon, he said,” according to CNBC.
SPDR Gold Shares
Tom Lydon’s clients own shares of GLD.