September U.S. Rate Hike Wouldn’t Spoil Appetite for Gold: ChartBy
For the manager of SPDR Gold Shares, the largest exchange-traded fund backed by the metal, not even a surprise increase in borrowing costs this month would be enough to damp investors’ appetite for gold. Almost $12 billion has poured into SPDR Gold this year, poised for the biggest annual inflow since its inception in 2004. While a Fed hike this month could trigger a broad-based selloff in markets, it wouldn’t cause gold to slide into a bear market because rates would still be near historic lows, said David Mazza, the head of ETF and mutual-fund research at State Street Global Advisors.
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