Insights

Three Things Moving the Price of Gold Right Now

The price of gold hit the $2,000 per ounce mark on Monday, March 7 – steadily approaching its all-time high of $2,073 per ounce, and reaching the highest level seen since August 2020.

Many investors wonder if the run-up in price will be short-lived or if the yellow metal will continue to climb. Although it’s hard to say for sure, there are a handful of things we have witnessed moving the yellow metal at this time.

Below are three things pushing the price of gold higher, for now.

Number One: Conflict in Russia and Ukraine continue to escalate, with more flight to perceived “safe-haven” demand propping up gold. Frank Holmes, CEO of U.S. Global Investors, believes that gold continues to be undervalued and we could potentially see prices climb as high as $3,000 per ounce if geopolitical tensions continue to escalate.

Number Two: With the U.S. and its Western allies freezing Russia’s foreign reserves and cutting off the flow of money, investor interest in real assets appears to have been renewed. Unlike fiat currency, gold is private property that’s traded and has historically been respected all across the globe.

Number Three: The Federal Reserve is preparing to raise interest rates, and historically, that’s been constructive for the price of gold. There’s concern that a rate hike at this time could stall economic expansion and sideline stocks, which could potentially favor gold as investors seek a store of value.   

As supply disruptions worldwide are almost certain to persist, we believe exposure to gold and gold mining stocks could be prudent. One way for investors to gain exposure to a wide-ranging portfolio of companies within the gold mining industry, including production to gold royalty companies, is with the U.S. Global GO GOLD and Precious Metal Miners ETF (GOAU).

Want to learn more? Click here to explore GOAU!

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor

Please carefully consider a fund’s investment objectives, risks, charges, and expenses. For this and other important information, obtain a statutory and summary prospectus for GOAU here. Read it carefully before investing.

Disclosures: Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the funds. Brokerage commissions will reduce returns. Because the funds concentrate their investments in specific industries, the funds may be subject to greater risks and fluctuations than a portfolio representing a broader range of industries. The funds are non-diversified, meaning they may concentrate more of their assets in a smaller number of issuers than diversified funds. The funds invest in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods. These risks are greater for investments in emerging markets. The funds may invest in the securities of smaller-capitalization companies, which may be more volatile than funds that invest in larger, more established companies. The performance of the funds may diverge from that of the index. Because the funds may employ a representative sampling strategy and may also invest in securities that are not included in the index, the funds may experience tracking error to a greater extent than funds that seek to replicate an index. The funds are not actively managed and may be affected by a general decline in market segments related to the index. Gold, precious metals, and precious minerals funds may be susceptible to adverse economic, political, or regulatory developments due to concentrating in a single theme. The prices of gold, precious metals, and precious minerals are subject to substantial price fluctuations over short periods of time and may be affected by unpredicted international monetary and political policies. We suggest investing no more than 5% to 10% of your portfolio in these sectors.

Fund holdings and allocations are subject to change at any time. Click to view fund holdings for GOAU.

Distributed by Quasar Distributors, LLC. U.S. Global Investors is the investment adviser to GOAU.