Concerns over economic instability in a post-Brexit world have subsided, further pressuring the precious metals market. The shift away from safe-havens toward riskier assets has diminished the attractiveness of bullion.
However, with many global investors doubting the dollar can rally without assistance from the Federal Reserve, gold and other precious metals could be poised to deliver more upside in the near-term.
“Hedge funds’ steady support of higher gold prices may not be that surprising, considering the returns enjoyed by investors in gold this year,” according to Mining.com. “A report by the World Gold Council released last week showed gold has been one of the best performing assets so far this year, outpacing all major benchmark indices.”
For more information on the gold market, visit our gold category.
SPDR Gold Shares
Tom Lydon’s clients own shares of GLD.