Go for Gold With These Strong ETFs

Since the economy is not expected to sail in calmer waters anytime soon, SPDR Gold Trust ETF (GLD – Get Rating), iShares Gold Trust ETF (IAU – Get Rating), and World Gold Trust – SPDR Gold MiniShares Trust (GLDM – Get Rating) could be ideal investments to help portfolios retain their luster even amid inflation, volatility, and occasional black swan events.

While the U.S. dollar was gaining strength due to interest-rate hikes by the Federal Reserve, the demand for gold from central banks worldwide totaled 1,136 tonnes in 2022, which is usually negatively correlated to the world reserve currency.

If this hoarding was fueled by misgivings that the Fed might overcook it with rate hikes and tip the U.S. and global economy into a downturn, they have been manifesting themselves with an evolving banking crisis on both sides of the Atlantic.

Despite the ongoing market turmoil, inflation is still high enough to warrant caution from the Fed as the central bank looks set to increase interest rates at least by another quarter point this week. This is expected to compound troubles for business and their financiers, already weighed down by significant increases in borrowing costs.


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