ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Direct Indexing
    • Disruptive Technology
    • Energy Infrastructure
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Financial Literacy
    • Fixed Income
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Modern Alpha
    • Multifactor
    • Night Effect
    • Portfolio Strategies
    • Responsible Investing
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Commodities Channel
  2. Gold Could See an Incoming Short-Term Correction
Commodities Channel
Share

Gold Could See an Incoming Short-Term Correction

Ben HernandezJul 12, 2022
2022-07-12

Amid more tightening by the Federal Reserve that’s pushing up the dollar into the stratosphere, gold prices have been languishing. However, a short-term bounce could be ahead, giving traders a potential opportunity.

Rising inflation continues to be on the mind of investors, given bullish greenback overtones resonating through the capital markets. It’s been a reversal for gold, which was strong out of the gate before losing steam by May 2022.

“Gold is overall bearish, but approaching significant possible exhaustion levels below, which could trigger a bullish correction/trend,” said Michael Moor, founder of Moor Analytics, in a Kitco News report. “We have broken below multiple bearish formations, but are likely in the last structural stretch down from the highs.”

From a technical standpoint, however, some market strategists see a potential bounce ahead.

“The recent drawdown in the gold price has mainly been driven by a rally in the U.S. dollar, which has been getting overextended technically. With the RSI for XAUUSD getting oversold, gold could be due for a short-term trading bounce,” said Colin Cieszynski, chief market strategist at SIA Wealth Management. “That being said, with so much capital moving into the U.S. looking for a defensive haven, gold could continue to struggle against the U.S. dollar.”

Play a Bounce With SGOL

Rather than make an indirect play on miners or gold futures, ETFs that focus on physical gold can give investors a more tangible feel for playing gold prices. One fund to consider for this level of exposure is the abrdn Physical Gold Shares ETF (SGOL A).

The fund seeks to reflect the performance of the price of gold bullion. Fund facts per SGOL’s fact sheet:

  • Physically-backed: The trust holds allocated physical gold bullion bars stored in secure vaults.
  • Transparency: The metal is held in allocated bars, and a bar list is posted daily on abrdn.com/usa/etf.
  • Pricing: The metal is priced off the London Bullion Market Association’s specifications for Good Delivery, which is an internationally recognized and transparent benchmark for pricing physical gold.
  • Vault location: Metal is held in Zurich, Switzerland, and London, England in a secured vault.
  • Vault inspection: Inspectorate International, a leading physical commodity auditor, inspects the vault twice per year (including once at random).

For more news, information, and strategy, visit the Commodities Channel.


Content continues below advertisement

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X