Related: Could Lingering Fear Reignite Gold ETFs?
Low gold prices could also spark increased consumer demand, a scenario seen in previous weak gold environments.
“Gold’s recent price pullback may likely support consumer demand as, historically, lower prices have driven jewelry buying, as recently happened in 2013, 2014, and 2015. For investors, gold’s current price range may offer an attractive entry level,” according to Artigas.
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Tom Lydon’s clients own shares of GLD.