Some Good Technical News for Gold ETFs

Negative interest rates throughout the developed world are also seen as a catalyst for gold upside.

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. Making matters worse for gold ETFs are expectations for soft near-term demand at a time of year when gold demand is usually strong. [Doubters in Gold Rally]

Investors have poured over $2.4 billion into GLD, the largest gold-backed ETF, this year.

SPDR Gold Shares

Tom Lydon’s clients own shares of GLD.