News Digest: High Gold Prices Make Select ETFs a Good Bet
June 7, 2024
News Digest:
Gold prices, which saw a correction last week, gained marginally amidst concerns of a further delay in Fed rate cuts. At the same time, gold ETFs and gold stocks are pulling back from recent highs making it a good option for investors seeking exposure to the yellow metal.
According to a report, gold prices have soared around 16% topping $2,450 per troy ounce and analysts believe that there’s still headroom as the June delivery contract touched $2,454. Besides the delay in inflation, gold is becoming dearer over growing Chinese demand with the markets expecting it to cross $2,575 this year.
Takeaway:
This is where gold ETFs could come in handy as they aren’t gold mining stocks that could turn volatile. The ETFs aim to match the performance of gold bullion prices in London with some like the S&P Gold Shares ETF outperforming the S&P 500 this year, and gaining 15%, says the news report.