Gold Price Drop Triggers Bullish Bet on SPDR Gold Shares ETF

The author of this article has increased their allocation to the SPDR Gold Shares ETF (GLD) to a full 5% of their portfolio after gold prices fell sharply at the start of the week on September 28.

Despite lower odds of a Fed rate hike and cooling inflation, persistently high long-term yields reflect unsustainable U.S. debt dynamics, setting up a bullish case for GLD.

The author expects eventual Fed intervention to cap yields, driving real yields negative and triggering a structural bull market in gold.