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Gold rebounds about 15% since June after weak quarter
Gold has risen roughly 15% since June, though it is still below its January all-time high as investors weigh yield and risk.
Gold has shown signs of life after posting its worst quarterly return in more than a decade, and it has rebounded roughly 15% since June, according to commentary from Horizon’s asset management team in ETF Trends.
The outlet notes gold’s advance is occurring as yields and other pressures weighed on the metal earlier, and it frames gold as a non-traditional diversifier because it does not generate earnings or cash flows like stocks and does not offer yield or have default risk like fixed income.
Gold’s distinct behavior can help investors understand shifting market risk, ETF Trends says, including scenarios where gold strength coincides with a weaker dollar and rising long-term interest rates.
The commentary also cautions that gold can still swing sharply in the short term, citing average daily volatility that is nearly as high as stocks’, even as its lack of earnings may limit long-term capital growth potential versus equities and bonds.
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