The SPDR Gold Shares (NYSEArca: GLD) and other gold-related exchange traded products have been in rally mode and some market observers believe the combination of increased geopolitical concerns and the weak dollar could continue boosting bullion.
Gold saw renewed safe-haven demand, especially as more traders grow cautious on speculation that Trump’s policies may not move forward in a timely fashion.
“The yellow metal closed above $1,270 an ounce last week for the first time since soon after the November presidential election. A “golden cross” has not yet occurred, with the 50-day moving average still below the 200-day, but such a move appears likely in the next few trading sessions if upward momentum can be sustained,” reports ETF Daily News.
Gold’s recent bullishness is impressive when considering that the Federal Reserve raised interest rates earlier this month, setting the stage for two more rate hikes later this year. However, the yellow metal has been boosted by the dollar’s disappointing showing this year.
Investors are displaying some enthusiasm for gold ETFs. For example, ETFS Physical Swiss Gold Shares (NYSEArca: SGOL) has added nearly $5.6 million in new assets this year. GLD, the world’s largest gold ETF, has seen year-to-date inflows $874.2 million in new capital.