Gold prices surged more than 2% intraday, approaching a key resistance level of $4,200 after a period of consolidation in July. This rally follows the Federal Reserve's decision to hold interest rates steady, which has somewhat improved support for gold. However, a study from the University of Cape Town reveals that gold's traditional role as a safe haven and hedge has weakened since the COVID-19 pandemic, with its protective effect now varying by sector. Investors should watch resistance levels at $4,200 and $4,375 for potential further moves, but remain cautious about gold's defensive reliability in current markets.
The SPDR Gold Shares (GLD) ETF is down 5.59% year-to-date and charges a 0.40% fee without generating income, making it costly during gold's consolidation. A newer ETF, NEOS Gold High Income (IAUI), uses a call-option strategy on gold to generate mont...
Gold prices have fallen 25% since January but saw a strong rebound in call option buying after weak U.S. jobs data and stabilizing Treasury yields. Investors bought nearly $100 million in call options on the SPDR Gold Shares ETF and over $80 million ...
Leveraged precious metals ETFs surged sharply, with the Direxion Daily Gold Miners Bull 2X Shares (NUGT) up 14.46% and ProShares Ultra Silver (AGQ) rising 9.39%, driven by gold and silver prices climbing 4-5%. The rally is attributed to a weaker US d...
