Gold ETFs have picked up steam as geopolitical uncertainty has increased and stocks faltered earlier this summer.
Investment demand remains robust as an increasing number of institutional investors, sovereign wealth funds and central banks seek gold as a potential source of return and diversification to traditional stock and bond portfolios.
On the upcoming webcast (available live and on demand for CE Credit), An In-Depth Look Into Gold’s Resurgence and its Sustainability, George Milling–Stanley, Head of Gold Strategy at State Street Global Advisors, Juan Carlos Artigas, Director of Investment Research at the World Gold Council, and Alistair Hewitt, Director at the World Gold Council, will go over the drivers of gold’s performance and consider the outlook for gold for the rest of the year.
The SPDR Gold Shares (NYSEArca: GLD), the largest gold-related ETF on the market, has increased 12.3% year-to-date as Comex gold futures strengthened to $1,288.7 per ounce so far this year.
In a year of marked by stubbornly low interest rates, a weak U.S. dollar, depressed inflation and sudden bouts of uncertainty, the current macroeconomic environment has been favorable for gold.
We have witnessed an environment characterized by catalysts of event risk driven demand. Supporting the short-term demand for gold bullion in recent weeks, a number of events that benefited metals included geopolitical tensions with North Korea, political risk in Washington and dovish monetary policy commentary from both Federal Reserve Chair Janet Yellen and European Central Bank President Mario Draghi.