“Most of the investors I have spoken with believe we are in for much greater volatility in equities. As for investor positioning going into 2018, there has definitely been an increase in strategic allocations to gold on the part of both institutions and individuals,” Milling–Stanley said.
Related: Why Gold ETFs Can Keep Shining
Gold traders have also closely monitored the U.S. dollar movements as the two assets have exhibited an inverse relationship. Artigas, though, assured investors that while rates in the U.S. are rising, investors are also expecting the European Central Bank and Bank of Japan to raise rates, which could strengthen those respective currencies against the greenback. Disruptions in trade based on more nationalistic approach to growth has also limited the potential for the dollar to strengthen.
As investors look for ways to hedge against market risk and build a diversified investment portfolio, a gold ETF like the SPDR Gold Shares (NYSEArca: GLD) is a good way to protect spending power in an inflationary environment and provides a safe haven investment opportunity.
For more information on the gold market, visit our gold category.
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