China s Voracious Gold Appetite Could Satiate This Mining ETF etftrends.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from etftrends.com Daily Mail and Mail on Sunday newspapers.
Investors considering SGDM over the near-term don’t need to look far for an ally because they’ve got one in the Federal Reserve. The Fed’s bond buying is seen as a catalyst for bullion, which could turn into a spark for SGDM.
“In the process, the Fed’s Treasury bondholdings zoomed past those of foreign nations parked at the U.S. central bank, which have remained flat around $3 trillion. And overall foreign holdings of Treasuries fell by $591 billion in the latest 12 months,” reports Randall Forsyth for
. “The Fed’s massive securities purchases fueled a $4.2 trillion explosion in the broad M2 money supply in the year through February. That, in turn, helped send the U.S. Dollar Index tumbling 13% from its peak last March to the turn of the year. Since then, it’s recovered by about 3%.”
Gold Miners and the SGDM ETF Are Showing Signs of Life April 9, 2021
Gold and bullion miners had a rough first quarter, but spring and the second half of the year could bring better things for the
As the dollar and Treasury yields fall back, bullion and SGDM could regain their bullish ways.
“Precious metals miners turned in a strong showing today, as gold futures ended higher to mark the highest finish since February, supported partly by a decline in the dollar and an expected rise in inflation,” according to
The Case for a ‘SGDM’ Rebound
With the federal government stepping in to help shore up the economy, it might seem like gold gains could be tamped down. However, some market experts predict that the U.S. economy will be tested in the coming months, potentially further boosting bullion and ETFs.