The rebound follows a bona fide bear market decline of 35.4% from the ETF’s 52-week high last August to its 52-week low in March.
The yellow metal itself has climbed off the mat over the past few weeks, rising to $1,795 an ounce, close to a two-month high and up 6.51% from its low in late March.
quantitative and derivative strategists point to shift in Bitcoin futures after the cryptocurrency failed to break out above $60,000 that shows traders are reducing their positions.
Beyond Bitcoin, other recent indicators from the bond market have been working in gold’s favor.
The real yield on the 10-year TIPS had been rising sharply earlier in the year, from negative 1.06% in February to negative 0.56% in mid-March.
Indeed, Barrick’s dividend yield of 1.58% matches that of the benchmark 10-year Treasury note, while providing inflation protection that bonds cannot.
The Federal Reserve’s avowed aim to lift inflation “moderately above” its 2% target seems assured by its super-easy policies of near-zero interest rates and expanding its balance sheet at an annual rate over $1.4 trillion.
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