Gold remains the safe haven hedge for many investors when risks threaten. You need look no further than the price performance and demand this year to understand its value in portfolios. Investors looking to add gold to their portfolios while also diversifying across commodities don’t want to miss the Neuberger Berman Commodity Strategy ETF (NBCM ).
Amidst significant market drawdowns this year, the stability of gold as a store of value proved a popular choice with investors. As funds flowed into gold ETFs and demand grew, prices climbed. Gold notched record highs in the tariff-induced market crash in April, and continues to make headway at the beginning of June.
Spot gold prices climbed once more on Monday on renewed China-U.S. trade tensions, geopolitical risks, and economic uncertainty. Ongoing market volatility and the associated risk-off sentiment of investors creates a favorable environment for the precious metal.
“The latest tariff threats on Friday, including plans to double steel and aluminium tariffs to 50% along with Ukraine’s weekend attacks deep into Russia, have heightened geopolitical risks and are fuelling risk-off sentiment," Peter Grant, vice president, senior metals strategist at Zanier Metals, told Reuters.
Renewed trade optimism in May halted gold’s meteoric price gains this year. However, with new tariff threats and uncertainty, coupled with ratcheting geopolitical tensions, the future could be bright for gold price momentum.
Harness Gold Momentum While Diversifying Commodity Exposures
NBCM has provided noncorrelated performance this year, gaining during several periods when equities fell. The fund is currently up nearly 500 basis points YTD over the S&P 500, measured using the SPDR S&P 500 ETF Trust (SPY ).
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