Two reasons why gold ETFs have hit a speed bump
First, demand for gold—the underlying asset—is more subdued than before. Safe haven demand for gold has reduced with the easing of hostilities in the Strait
First, demand for gold—the underlying asset—is more subdued than before. Safe haven demand for gold has reduced with the easing of hostilities in the Strait of Hormuz.
Higher import duties have reduced gold imports by India, one of the largest gold consumers in the world. Persistent inflation in the US has set
up expectations for rate hikes by year-end; as a result, the dollar has strengthened against major currencies. A stronger dollar makes gold less affordable for
emerging economies (especially big gold buyers, India and China), thus pulling down gold demand.
The BriefWire