Gold Demand is Robust

With a Fed rate hike in doubt, precious metals-related assets surged Friday. An extended low-rate environment would help support gold, which pays its holders nothing and struggles to compete with yield-bearing assets if borrowing costs rise, as a more stable store of wealth, and a depressed U.S. dollar would also make USD-denominated gold cheaper for foreign buyers.

Related: Bullish Forecast for Gold ETFs

“BullionVault also said the number of investors starting or growing their personal gold and silver holdings through its metals exchange online rose in May to its best level since the price crash of Spring 2013 that ended in June that same year,” according to MarketWatch.

For more information on the Gold ETFs, visit our Gold category.

SPDR Gold Shares

Tom Lydon’s clients own shares of GLD.