Gold ETFs were looking less shiny today despite the price of the precious metal hitting an all-time high after the Liberation Day tariff announcement.
Pause for Breath
The spot gold price raced to a record peak of $3,167 after President Trump’s global tariffs announcement caused more investors to flee to the shiny safe haven.
However, the price has slipped since sitting at $3,086 in early morning EST. The SPDR Gold Shares ETF (GLD) was over 1% lower with the VanEck Gold Miners ETF (GDX) down 3%.
The reason, according to experts, was down to profit-taking as holders of gold cashed in on the remarkable rise in the metal over the last few months. The gold price is up nearly 20% in the year to date driven higher by uncertainty over Trump’s tariff plans and what they could mean for the global economy as well as rising geopolitical tensions in Ukraine, the Middle East and Taiwan.
Investors may also be taking a pause for breath to see, now that the tariffs announcement is out of the way what impact this will have on stock markets, currencies, commodity prices, inflation and interest rates.
Rally Expected to Continue
The likelihood, according to analysts is that the gold price will soon start to rally once more. “Weaker trade, higher input costs and shrinking margins are badly hurting the stock market, while geopolitical mistrust is deepening,” said Adrian Ash, director of research at BullionVault. “This offers the perfect backdrop for further gains in gold.”
Analysts at ANZ, according to Reuters, said central bank purchases of gold and strategic fund flows into the metal would push prices towards $3,200 over the next six months. Other analysts believe that it could soar even higher to $3,500 in the next two years.
Is the GLD ETF a Buy?
Most Wall Street analysts don’t offer ratings or price targets on the GLD, so we will look at its three month performance instead. As one can see in the chart below it has risen nearly 19% in the last 12 weeks.
