The SPDR Gold Shares (NYSE: GLD), the world's largest bullion-backed exchange traded product, has hauled in over $9.3 billion in new assets this year. That is nearly $4 billion more than the next closes ETF.
There are several reasons why GLD and rival gold ETFs have regained investors' favor this year, including still low interest rates in the U.S. and lower or even negative rates throughout the developed world. While not the garden variety interest rate policy, negative interest rate policies (NIRP) are having a profound, mostly positive effect on gold.
Raising Rates
Although it appears unlikely the Federal Reserve will raise interest rates this month and the same can probably be said of July, the Fed is intent on boosting borrowing costs. Even it does, U.S. interest rates will still be nowhere to close to historical norms, indicating any punishment delivered to gold ETFs in the wake of ...
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