Fed Decision Sends Gold and Silver Prices into Volatile Dance
The recent Federal Reserve decision has caused gold and silver prices to fluctuate. At the time of writing on September 17, spot gold was trading around $4,354 an ounce, while silver was trading above $64 an ounce.
Investors looking for exposure to precious metals can consider two ETFs: SPDR Gold Shares (GLD) and iShares Silver Trust (SLV). GLD has a 0.40% expense ratio and had around $145.28 billion in assets as of September 16, while SLV has a 0.50% expense ratio and held approximately $30.92 billion in net assets.
The Fed's rate hike has created near-term pressure on gold due to higher interest rates making non-yielding assets like gold less attractive. However, strong global investment demand continues to support gold prices, with global gold-backed ETFs attracting $18 billion of inflows in August and pushing total assets under management to a record 4,189 tons.