Gold Market Set for Comeback

Volatile stocks could bring prices back above $1,300

Image Credits: Andrzej Barabasz / Wikimedia Commons.

Gold, the classic bear-market investment, has been ignored by investors this year, and for good reason: Gold prices have gone in the wrong direction, losing about $100 in the price per ounce since January, leading gold exchange-traded funds to year-to-date losses near-5 percent. But as more investors fear that the end of the bull market in stocks is near and volatility in stocks continues, gold may get some attention.

The largest gold ETF, the SPDR Gold (GLD), has taken in $600 million in assets over the past month, according to XTF.com data through Nov. 21. It is a notable one-month movement into gold by investors, especially in light of the near-$3 billion move out of GLD year-to-date made by investors. So far in the fourth quarter, gold ETFs, including GLD, are up roughly 2.5 percent through Nov. 20.

“A lot of the factors that led to gold seeing little interest from investors are going to be reversing,” said Bart Melek, director and head of commodity strategy at TD Securities.

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