SPDR Gold Shares have seen the biggest increase since 2016 due to the weakening dollar, trade wars and speculation that the Federal Reserve will cut rates combined to fan demand.
Assets in the SPDR exchange-traded fund increased to 16.44 metric tons, or 2.2%, on Monday which is reported to be the biggest gain since July 2016. Looking at all other ETF’s, the statistics show that they have also enjoyed the most significant increase so far this year as gold prices surged above $1,300 an ounce – the highest since February as the dollar has stopped gaining ground.
This is good news for bullion and gold investors, as their investments tend to benefit from a low-rate environment.
St Louis Federal President James Bullard commented that “a cut may be warranted soon, and markets are now discounting at least two quarter-point reductions by year-end.”
Joni Teves, a strategist at UBS Group AG also weighed in on Monday with the statement that “Gold is once again trying to reclaim its role as a safe haven amid growing trade tensions and consequent risks to growth.”
“The price looks like it is getting comfortable above $1 300, with aspirations of testing this year’s highs” marking what could be a year of significant improvement for those looking to invest in the precious metal.