Gold Was the Most Hated ETF Play of August | Page 2 of 2 | ETF Trends

“The problem for gold bulls is that while inflation remains contained around the world and there’s no driver there for people to buy gold, that strengthening U.S. dollar will be a key factor,” Michael McCarthy, chief market strategist at CMC Markets, told Bloomberg, adding that while there’s potential for trade wars to slow global growth, it’s not a crisis and isn’t likely to spur haven demand.

Related: Gold ETFs Retreat on Rising Rate Outlook

Money managers are still betting on further weakness in the gold market as many have increased net-short positions to a record for a fifth straight week. Analysts at Citigroup Global Markets argued that there isn’t a lot of demand for gold in a world where yields and equities are rising.

For more information on the gold market, visit our gold category.