“Regardless of the equity rally, we’ve seen the start of interest-rate hikes which are believed to continue through 2017,” Jablonski said in a note. “This creates opportunities for investors looking to express bearish views on the 20+ Treasury index.”
Gold has also been a safe-haven play in an increasingly volatile world. However, gold has exhibited an inverse relationship with the U.S. dollar, weakening as the greenback strengthens, which recently occurred after the USD appreciated on the Federal Reserve’s monetary tightening policy. Nevertheless, global risks abound and investors may still turn to safe-haven assets.
Consequently, State Street Global Advisors and the World Gold Council have partnered up yet again to craft the SPDR Long Dollar Gold Trust (NYSEArca: GLDW). The new launch will help gold investors in an environment where the U.S. dollar is expected to appreciate.
“GLDW is basically an investment in gold for a strong dollar environment,” Milling-Stanley told ETF Trends. “The likelihood of a strengthening dollar during 2017 has deterred some investors from buying GLD, so GLDW gives investors the opportunity to gain exposure to movements in the price of gold in a basket of foreign currencies.”
Financial advisors who are interested in learning more about CFP/CIMA accredited panels on the online conference can register for the February 8, 2017 ETF Trends Virtual Summit.