Looking ahead, gold and other precious metals may continue to face an uphill struggle as the Federal Reserve is expected to keep hiking interest rates, which makes non-yielding assets like commodities less attractive. Sales of gold coins from the U.S. mint are also falling this year.
“Year-to-date, sales of brand-new gold American Eagle coins have fallen by one-fifth from the same period in 2017, data from the US Mint show,” according to BullionVault.
For gold to muster a credible near-term rebound, the dollar would need to weaken or inflation data would need to increase.
Tom Lydon’s clients own shares of GLD.