October Volatility Benefits Gold ETFs

Gold prices have recently stayed above the mid-August lows and a move close to $1,300 per ounce could trigger more buying. Rising interest rates have also stymied gold this year, but real rates are stabilizing, which could benefit bullion.

On a year-to-date basis, “flows in gold-backed ETFs remain negative by 25.8t (US$399, 0.44% AUM), despite the recent trend driven by a strong US dollar and bearish gold market sentiment,” according to the WGC.

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Tom Lydon’s clients own shares of GLD.