“There’s always the risk of some unexpected event happening,” he said. His firm has a small position in an exchange-traded fund that owns physical gold bars, and plans to hold onto it as a hedge against rate uncertainty. Matt Dmytryszyn, chief investment officer at Telemus, says he expects gold prices to trade between $1,700 to $1,900 over the next six months. Still, not everyone is saying good riddance to gold.Ĭostco’s chief financial officer Richard Galanti said during the company’s earnings call last week that the retailer typically sells out its one-ounce gold bars within a few hours after they’re restocked on the website. The SPDR Gold Shares exchange-traded fund, a popular fund tracking performance of physical gold, has declined 5% over the same period. Barrick Gold shares have lost 11% over the past three months, Kinross Gold has slid 3% and Northam Platinum has tumbled 22%. Gold has taken a hit, as have the shares of precious-metal miners. Then, the Fed indicated in September that it will likely raise rates one more time this year and keep them higher through 2024, sending US Treasury yields to their highest level in over a decade and fueling a rally in the dollar. Since then, the banking sector has stabilized, and the US labor market and economy have stayed remarkably resilient despite the Fed’s historic interest-rate hiking cycle, sparking worries that the central bank would keep rates higher for longer. Investors also bet that a banking crisis would lead the Federal Reserve to pivot from its interest rate hiking campaign, a move that could also boost the appetite for gold. Gold prices leapt to a near-record high earlier this year, as collapses of several US regional banks and sticky inflation led investors to seek refuge from market turmoil. A rise in the greenback’s value makes it costlier for foreign investors to purchase gold, whose price is denominated in dollars. Investors tend to prefer government bonds over gold when yields are high, because they offer regular coupon payments. That comes after the price of the precious metal has declined over the past few months, with the selloff accelerating in recent weeks due to a surge in bond yields and the dollar. Gold prices settled at $1,831.80 per troy ounce on Thursday, its lowest close since March. It does not store any personal data.Gold is facing tough competition this year as the preferred haven for cautious investors. The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. The cookie is used to store the user consent for the cookies in the category "Performance". This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other. The cookies is used to store the user consent for the cookies in the category "Necessary". The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". The cookie is used to store the user consent for the cookies in the category "Analytics". These cookies ensure basic functionalities and security features of the website, anonymously. Necessary cookies are absolutely essential for the website to function properly. Testimonial Disclosure: Testimonials appearing on this website may not be representative of other customers, and are not guarantees of future performance or success. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Past performance is not necessarily indicative of future results.ĬFTC Rules 4.41 – Hypothetical or Simulated performance results have certain limitations, unlike an actual performance record, simulated results do not represent actual trading. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Risk capital is money that can be lost without jeopardizing one’s financial security or lifestyle. An investor could potentially lose all or more than the initial investment. Risk Disclosure: Futures, Foreign Currency, Stocks and Options trading contains substantial risk and is not for every investor.
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