Gold assets have previously been selling off as more traders anticipated a September rate hike, which would have diminished the attractiveness of a hard asset that provides zero yields.
However, looking at the Fed funds futures market, options traders now saw a 24% probability of a Federal Reserve rate hike later this month.
“It was obviously lower than expected, which goes counter to (the Fed raising rates) in September, but it doesn’t necessarily count them out for the year,” Ellis Phifer, market strategist at Raymond James, told Reuters.
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Global X Gold Explorers ETF