Displaying items by tag: gold

Despite intense geopolitical tension followingv U.S. and Iranian missile exchanges, gold prices have struggled to maintain momentum above $3,400 an ounce. Analysts attribute gold’s muted safe-haven response to the conflict’s regional containment and investor focus on broader market dynamics. 

UBS argues that gold’s value lies more in its role as a portfolio diversifier than a short-term geopolitical hedge, emphasizing its historical strength in times of uncertainty. According to the World Gold Council, central banks and portfolio managers rank gold highly for diversification, stability, and as a store of value—especially amid unpredictable U.S. policies under the Trump administration. 

UBS maintains a bullish $3,800 price target for gold, citing continued central bank and ETF demand, and also highlights high-yield corporate debt from gold miners as an underappreciated investment opportunity. 

Finsum: With mining companies showing strong balance sheets and free cash flow, M&A activity is expected to rise, offering investors alternative ways to gain from the sector’s resilience.

With markets shaky despite record highs, investors are turning to commodity ETFs as a hedge against inflation and uncertainty driven by Trump-era tariffs and policy risks. Commodity prices tend to rise with inflation, making them attractive during volatile periods, and ETFs offer simplified access to hard assets like gold, oil, and copper without the complexity of futures trading. 

The Invesco PDBC fund leads the space with $4.7 billion in assets and diversified exposure, notably in energy and metals, all while avoiding cumbersome K-1 tax forms. Meanwhile, the actively managed First Trust FTGC ETF charges higher fees but provides exposure to a wider range of commodities, including agriculture and precious metals. 

For those focused on specific assets, the iShares Gold Trust (IAU) offers low-cost access to gold, while the CPER fund targets copper futures, riding recent price momentum in industrial metals. 

Finsum:  ETFs provide accessible, diversified, and tax-friendly ways for investors to gain exposure to commodities within traditional brokerage accounts.

Silver surged to its highest level in 13 years and platinum hit peaks not seen since early 2022, as investors piled into industrial precious metals amid strengthening fundamentals and market momentum. Both metals extended sharp gains from the prior session, with silver rallying past $36 an ounce and platinum climbing nearly 3%, while gold pulled back slightly following stronger-than-expected U.S. jobs data that cooled rate-cut expectations. 

Renewed physical demand—especially for silver in India and platinum in China—has supported the rally, alongside a tightening supply outlook that’s pushing both markets toward deficits this year. 

Silver’s role in solar panel production and platinum’s use in auto catalysts and lab equipment continue to anchor their industrial relevance, fueling investor interest. Analysts note that holding silver above $35 could reignite retail demand, while platinum-backed ETFs are seeing a resurgence, hinting at a broader speculative move. 

Finsum: With palladium also joining the rally and ETF inflows rising, the precious metals space is regaining serious momentum even as gold temporarily steps back.

Gold prices surged to an all-time high as investors sought safe-haven assets amid escalating U.S. tariff concerns. Spot gold climbed 1.3% to $2,794.42 per ounce, briefly touching $2,798.24, while U.S. gold futures settled 1.8% higher at $2,845.20. 

Market uncertainty grew following White House plans to impose steep tariffs on Mexico and Canada, with potential levies on China also under consideration. A weaker U.S. dollar and declining Treasury yields further bolstered gold’s appeal to investors. 

Meanwhile, the Federal Reserve maintained interest rates, signaling no urgency for further cuts despite slowing economic growth. Traders now await the upcoming inflation report for insights into future monetary policy.

Finsum: We will see some wild moves in commodities prices in the coming weeks given the retaliation already spiking in the trade wars. 

Gold prices retreated slightly after hitting a record high in response to the Federal Reserve's half-point interest rate cut. Spot gold fell 0.4% to $2,560.29 per ounce after briefly reaching $2,592.39 earlier in the day, while U.S. gold futures closed up 0.2%. 

The Fed's decision to lower rates, which is expected to continue into next year, has pushed gold prices higher due to its reduced opportunity cost compared to interest-bearing assets. As bond yields rise and the dollar weakens, the demand for gold strengthens. Investors are awaiting further insights from Fed Chair Jerome Powell on the future direction of monetary policy. 

Meanwhile, with inflation still elevated, many are turning to gold as a hedge against eroding purchasing power. Silver prices rose 0.6%, while platinum remained steady, and palladium dropped 3.2%.

Finsum: Gold could be an important hedge if inflation comes back from the grave with interest rates quickly falling.