Conventional wisdom dictates that rising interest typically facilitate a stronger dollar and because commodities are denominated in dollars, commodities languish as interest rates rise.
That conventional wisdom has been on display this year. Over the past six months, 10-year Treasury yields have jumped 35.6 percent while the SPDR Gold Shares (NYSE: GLD) has tumbled nearly 15 percent. Adding to gold and GLD's woes, as noted earlier this week, there is little in terms of demand support to boost the yellow metal.
Data out Tuesday from industry group GFMS show second-quarter gold demand among retail buyers in China slid 25 percent while jewelry demand slumped 23 percent, Reuters reported. China is the world’s largest gold-consuming country.
India, the world’s second-largest gold-consuming country after China, is often pointed to as a potential catalyst to lift ...
/www.benzinga.com/trading-ideas/long-ideas/15/07/5723116/not-so-fast-gold-etfs-could-surprise-when-rates-rise alt=Not So Fast: Gold ETFs Could Surprise When Rates Rise>Full story available on Benzinga.com
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