Gold ETFs Are On a Losing Streak (2 min read)
Gold prices slid even further after the Fed reiterated their commitment to stomp inflation with rising rates, even if it means a mild economic downturn. Gold and related ETFs have been dropping for five consecutive months, making it the worst losing streak in the last four years. In a high interest rates environment, the dollar is stronger and investors are more attracted to new government bond issues than assets without yield like gold. Unless the interest rates drop, dollars weaken, and a real recession emerges, the gold prices and related investments will remain low.