Economics
Gold Bulls Look Past Fed Rate Hike, Load Up on ETFs
- Inflows send holdings in the SPDR Gold fund to six-month high
- Goldman pushed back forecast for third rate hike to December
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Gold bulls who bet that the U.S. Federal Reserve may take a more cautious approach in monetary tightening appear to be on the money, judging by the latest batch of disappointing economic data.
Figures released Wednesday showed the U.S. consumer-price index unexpectedly fell in May, while retail sales slipped the most since the start of 2016, helping gold end its longest losing streak in three months. Even before the data that sent the dollar tumbling, investors already poured $675 million into SPDR Gold Shares last week, taking total bullion holdings in the largest exchange-traded fund backed by the metal to a six-month high.