Why Gold ETFs Are Suddenly Tarnishing

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Gold ETFs have enjoyed serious upside in recent years, with the price of the precious metal increasing 64% in 2025 after a 26% climb the year before. That drove strong performance in exchange-traded funds like the SPDR Gold Shares (GLD) and the iShares Gold Trust (IAU), both boasting a near 100% return between early 2025 and February of this year.

Lately? Not so much. The price of gold itself has fallen about 6% so far this year and more than 10% since the start of June. It's always hard to say exactly why the markets do what they do, but the inflation and interest rate outlook clearly isn't helping gold ETFs at the moment. The consensus today is that rates are likely to either stay flat or rise, and that's dulling gold's luster. It's a pretty bleak outlook for funds that track the spot price of gold, which fell below $4,000 last week for the first time since November 2024.

It may be high time for advisors to take a fresh look at gold, and help clients best position those assets in their portfolios. "The interest rate outlook is not just a story about inflation,

Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/commodities/articles/why-gold-etfs-suddenly-tarnishing-040100094.html)