With the capital markets uncertain on how to approach equities with trade wars and inverted yield curves on the horizon, its increased the taste for safe-haven assets like gold exchange-traded funds (ETFs). In Monday’s trading session, gold was up more than 1 percent to pass the $1,550 per ounce price mark for the first time in more than six years.

Per a CNBC report, spot gold was “up 0.3% at $1,531.20 per ounce, after hitting its highest since April 2013, at $1,554.56 earlier in the session. U.S. gold futures were up 0.1% at $1,538.90.

“This is all about the trade tensions and the related risk of global slowdown or even a global recession that is driving investors to safe-havens,” said Julius Baer analyst Carsten Menke.

“There is doubt in markets about these trade talks, so benefit of doubt or the leap of faith is not provided by financial markets anymore when it comes to the trade topic, which will be supportive for gold.”

As Treasury yields continue to skydive, gold price levels could go through the roof as the scrambler for safe haven assets continues amid the latest market volatility as trade wars between the U.S. and China rage on. This could provide more gains for gold-focused ETFs as analysts are predicting that the precious metal could shoot past the $2,000 per ounce price mark.

The case for gold

The case for gold was certainly assisted by the Federal Reserve who implemented a rate cut of 25 basis points recently. The weakness in the U.S. dollar caused gold to climb, but the case for the precious metal is also coming from the bond markets.

Bond yields have been sinking to fresh lows as investors continue to pile in on safe haven government debt.

For many investors, gold is the standard in precious metal investing, which has become more accessible than ever thanks to options via an exchange-traded fund (ETF) wrapper like the SPDR Gold MiniShares (NYSEArca: GLDM).

In addition, investors can look at exchange-traded funds (ETFs) like the SPDR Gold MiniShares (NYSEArca: GLDM) and SPDR Gold Shares (NYSEArca: GLD). Adding precious metals to a portfolio certainly speaks to the diversification benefits of gold, among other things.

Leveraged exchange-traded fund (ETF) traders can look to funds like the Direxion Daily Gold Miners Bull 3X ETF (NYSEArca: NUGT) rise. Additionally, short-term traders can also play the gold market through miners via the VanEck Vectors Gold Miners (NYSEArca: GDX) and the Direxion Daily Jr Gold Miners Bull 3X ETF (NYSEArca: JNUG).

For more relative market trends, visit ETFtrends.com.

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