Gold investors have taken a pummeling so far this year.
The SPDR Gold Shares exchange-traded fund, which tracks the price of bullion, is down 5.3% in the year.
Many precious metals investors would have found that disappointing especially given that there is widespread belief that gold is believed to be a long term hedge against inflation. And yes, inflation has been rising this year, hitting a recent high of 9.1% in June and falling to 8.5% in July.
Gold continued its recent struggles on Friday to set a new two-year low after a slew of central banks followed the US Federal Reserve in raising interest rates to cool inflation.
Gold’s decline comes on the back of a rallying US dollar, which touched a 20-year high, curbing demand for the greenback-priced metal. Benchmark 10-year yields also jumped to their highest since April 2010, further dampening demand for bullion.
“We’re seeing relentless dollar strength here and that’s going to keep gold vulnerable in the short term,” Edward Moya
The SPDR Gold Shares exchange-traded fund, which tracks the price of bullion, is down 5.3% in the year.
Many precious metals investors would have found that disappointing especially given that there is widespread belief that gold is believed to be a long term hedge against inflation. And yes, inflation has been rising this year, hitting a recent high of 9.1% in June and falling to 8.5% in July.
Gold continued its recent struggles on Friday to set a new two-year low after a slew of central banks followed the US Federal Reserve in raising interest rates to cool inflation.
Gold’s decline comes on the back of a rallying US dollar, which touched a 20-year high, curbing demand for the greenback-priced metal. Benchmark 10-year yields also jumped to their highest since April 2010, further dampening demand for bullion.
“We’re seeing relentless dollar strength here and that’s going to keep gold vulnerable in the short term,” Edward Moya