Gold Fund Bounces Back from Weakest Level Since August
The Global X Physical Gold (ASX:GOLD) fund has been in focus this week after bullion rebounded on Tuesday from its weakest level since August, following a sharp drop on Monday driven by higher oil prices and rising bets on further US rate hikes.
The rebound leaves the largest gold-backed exchange traded product on the ASX trading below record levels reached earlier this year but still well ahead of where it stood a year ago.
The fund's performance is closely tied to the price of gold in Australian dollars, with the metal kept by JPMorgan Chase Bank in vaults in London. The currency effect has cushioned local returns relative to the US dollar price, with the Australian dollar easing despite the Reserve Bank of Australia lifting the cash rate on Tuesday.