Rising US Yields Test Global X Physical Gold Fund

A recent surge in US Treasury yields and rising bets on another Federal Reserve rate increase have put pressure on gold prices, potentially affecting the Global X Physical Gold fund.

The fund, which tracks the spot gold price and owns physical bullion stored in a secure vault, has seen its value move with the gold price as expressed in Australian dollars. This means that both the US dollar price of bullion and the exchange rate influence returns.

Despite this, several long-running supports remain in place for gold, including sustained purchases by central banks diversifying their reserves, persistent geopolitical tension in the Gulf and elsewhere, and concern about the scale of government borrowing in major economies.