TThe good news for gold ETFs is that inflation could serve as a catalyst for the yellow metal. Rising inflation could also prove to be a catalyst for gold ETFs. By some metrics, the Fed has under-estimated U.S. inflation, which could prove beneficial to gold because the yellow metal is historically a popular inflation fighter.
“Holdings in bullion-backed ETFs hit 2,268.6 metric tons last week, the most since 2013, data compiled by Bloomberg show. The hoard has risen about 43 tons this year, the eighth quarterly rise in the past nine. The dollar has weakened and global equities are set for the first quarterly fall since early 2016,” according to Bloomberg.
Tom Lydon’s clients own shares of GLD.