Golden ETFs Lose Their Shine as Inflation Fears Haunt Investors

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Gold exchange-traded funds had a tough time today as investors took a new look at the ongoing geopolitical crisis in the Middle East.

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The gold price has rocketed higher over the last 12 months and most recently in the last few days as a result of investors flocking to it as a safe haven during times of turmoil. Clearly, the newest driver has been the U.S. and Israeli war on Iran, which has spread to a number of Gulf states, Cyprus and Turkey.

However, another consequence of the conflict seems to have been more in focus today – inflation. Iran and the Gulf States have control of much of the world’s oil and other commodities such as fertilizers for crops. Any squeeze on supply will lead to higher prices for businesses, farmers and people at the gas station and in the shops.

A hike in price inflation means it is less likely that we will see more interest rate cuts. Gold tends to do well when interest rates are lower.

Golden Slumbers Today

Let’s take a look at how the main gold ETFs fared today.

  • SPDR Gold Shares ETF GLD -1.00% ▼ was down 1.23%

  • iShares Gold Trust IAU -1.03% ▼ was 1.3% lower

  • Aberdeen Standard Physical Gold Shares ETF SGOL -1.00% ▼ was off 1.23%

  • GraniteShares Gold Shares BAR -1.11% ▼ was 1.21% lower

  • SPDR Gold MiniShares Trust GLDM -1.02% ▼ was down 1.22%

Which Gold ETF Should Investors Buy?

Turning to the TipRanks ETF Comparison tool, traders can find all of the latest details on the gold ETFs mentioned above. While all of these ETFs were down today, they have experienced strong gains over the past year. This suggests today’s dip could be a good entry point for traders. Investors can also compare each of these ETFs’ AUMs, expense ratios, and dividend yield to determine which are the best for their portfolios.

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