What's Going On With Gold?
Gold futures continued trading higher early Monday morning and reached its highest levels in almost three weeks.
Bloomberg attributed the commodity's gains to a weak U.S. dollar and cautious commentary from the Federal Reserve regarding an interest rate hike. Meanwhile, European governments bonds continue offering negative yields.
Shares of SPDR Gold Trust (ETF) (NYSE: GLD) were higher by 1 percent Monday morning at $119.61 – within striking reach of its 52-week high of $122.37. Market Vectors Gold Miners ETF (NYSE: GDX) saw its shares trade higher by more than 2 percent at $21.88 – topping the prior 52-week high of $21.55. Additionally, the Direxion Daily Gold Miners Bull 3X ETF (Direxion Shares Exchange Traded Fund Trust (NYSE: NUGT)) traded higher by 6.5 percent in the pre-market at $76.07.
Ole Hansen, head of commodity strategy at Saxo Bank A/S in Denmark told Bloomberg that gold's gain is attributed to the "weakness" in the U.S. dollar. The analyst added that an expected delay in future rate hikes from the Federal reserve is "the main driver why managers are looking for alternatives to negative yield."
Other commodities, such as silver, also saw gains early Monday morning. iShares Silver Trust (ETF) (NYSE: SLV) was trading higher by nearly 2.50 percent.
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