The Fed’s reluctance to raise interest rates is contributing to a weaker dollar, which has also helped support USD-denominated gold bullion. Consequently, a weaker USD makes alternative assets like metals more attractive.
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“Even if gold prices do not see substantial upside from here but manage to find support at around $1300-$1350 an ounce, it will be positive for mining companies. Remember during the last three years, gold mining companies have significantly reduced their costs as I had noted in an article a few months ago. This means that margins will remain strong even if gold does not see upside from current levels,” adds Seeking Alpha.
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VanEck Vectors Gold Miners ETF