Gold exchange traded products, including the SPDR Gold Shares (NYSEArca: GLD), iShares Gold Trust (NYSEArca: IAU) and ETFS Physical Swiss Gold Shares (NYSEArca: SGOL), have been among this year’s most durable commodities exchange traded funds. That trend could continue if geopolitical concerns prompt investors to move to safer assets.

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.

Gold has enjoyed greater demand in a low interest-rate environment as the hard asset becomes more attractive to investors compared to yield-bearing assets. However, traders lose interest in gold when rates rise since the bullion does not produce a yield.

“Gallied to its highest level in five months in Wednesday trading, gaining over $9 per ounce in the session as tension mounted around the world. Secretary of State Rex Tillerson said Wednesday at a joint news conference with Russian Foreign Minister Sergey Lavrov that U.S.-Russia relations were “at a low point,” and called for improvement after the U.S. missile astrikes in Syria last week,” reports CNBC.

Indian demand is vital for gold because the country is the second-largest buyer of the yellow metal behind China. India, one of the world’s largest gold consumers, could be set to lower its import tax on bullion, which could be major catalyst for gold prices. Still, emerging market demand for gold has not picked up yet. For instance, China has shown little demand, with the Shanghai Gold Exchange seeing little growth in volume.

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