Gold Mining Tops In June: 5 Best ETFs, Stocks
Zacks Investment Research | Jun 30, 2019 10:05PM ET
Gold was on a rise in June and recorded its best month in three years, climbing about 8%. The rally was primarily driven by hopes of loose monetary policies across the globe and flight to safe haven owing to rising geopolitical tensions and global growth worries.
In particular, the Federal Reserve has opened the door for interest rate cuts as soon as next month. Lower rates will continue to weigh on the dollar against the basket of currencies, raising the yellow metal’s attractiveness as it does not pay interest like fixed-income assets. Additionally, other major central banks have also been adopting easy money policies that have boosted the yellow metal.
A combination of factors including falling yields, trade gyrations between the United States and China as well as escalation in U.S.-Iran tensions spurred demand for the yellow metal as a great store of value and hedge against market turmoil.
Further, gold purchases by central banks have soared this year. Holdings in gold-backed exchange-traded funds are at the highest since 2013, according to data compiled by Bloomberg (read: Original post
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