Gold ETFs Poised For Upside With More Rate Cuts
August 02, 2019 at 12:21 PM EDT
Gold ETFs are steady, preparing for a drive to the upside amid increased expectations of further U.S. interest rate cuts. Gold is believed by many investors to be inversely correlated with interest rates. Rising interest rates make bonds and other fixed-income investments more attractive, so money will flow into higher-yielding investments, such as bonds and money market funds, and out of gold, which offers no yield at all during times of higher interest rates, and back into gold ETFs.