Gold Remains One of Traders’ Top Picks amid Increasingly Unpredictable Markets
December 5, 2023
Spot gold (XAU) hit a new high of USD 2,142/oz earlier yesterday before falling more than 2% as the dollar recovered. Still, most traders are quite bullish on gold.
The rise came as U.S. Treasury yields retreated from 16-year highs in October as expectations grew that the Federal Reserve could begin cutting interest rates as early as March. Falling yields tend to increase the appeal of gold, a zero-yielding asset. In November, as the U.S. Dollar Index Spot (DXY) recovered losses to close near weekly highs against major currencies, investors rushed back into the popular SPDR Gold Equity ETF (GLD), with net inflows exceeding $1 billion, in part due to It’s a reversal in gold price trends. Big selloff earlier. However, the market has scaled back aggressive bets. The fund ended November up 2.5% but fell 2.1% on Monday.
It was the strongest month for inflows into the SPDR gold fund since March 2022, ending a five-month streak of outflows. The fund ended November up 2.5%.
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