Gold has had a tough year, but things could turn around in the second half, market analyst says

SourceCNBC
SectorEconomy
CountryMiddle east

Could see a resurgence in the second half, said one market analyst. The metal has had a rough go of it in 2021, down nearly 5% year to date as investors rotate out of the safe haven trade into riskier assets. on Wednesday, though they’re up almost 2% in July.

The rotation also hit exchange-traded funds, with (GLD), the largest ETF in the world backed by physical gold, seeing $7 billion in redemptions so far this year, ETF Trends CEO Tom Lydon told CNBC on Monday. The redemption process helps keep an ETF’s trading price in line with its underlying net asset value when it is trading at a discount to its NAV. But could be setting gold up for a rebound, Lydon said in an interview on “Historically, when you look at inflationary times, gold tends to be a second-half player,” said Lydon, also CEO of ETF Database. Over the past 12 months especially, gold prices have been flat...read more...