Global X Physical Gold Rebounds After Weakest Level Since August
The Global X Physical Gold (ASX:GOLD) has seen a rebound in its price after falling to its weakest level in several weeks, driven by higher oil prices and rising bets on further US rate hikes. The product mirrors the Australian dollar gold price and is backed by allocated bars stored in London.
A softer Australian dollar following the Reserve Bank of Australia's decision has cushioned local returns relative to the US dollar price, making the product a cleaner tool for those who want exposure to gold as an asset class rather than to the businesses that dig it up.
The next set of catalysts arrives quickly, with US inflation and payrolls data due later this week shaping expectations for another Federal Reserve move, while local monthly inflation data released today will influence the path for the RBA and the Australian dollar.