The Rio Olympics isn’t the only event that’s put gold on the map, but the reality is that the yellow metal might be in for a stall, or even a fall depending on global dynamics and Fed decisions.
In the meantime, the yellow metal continues to be hot, moving toward $1400 per ounce, a 29-month high, which begs the question: Is it almost time to sell?
Gold futures have been in an upswing all year and are now near $1350 per ounce. Year-to-date through August 12 the Barclay Financial and Metals Traders Index, comprised of commodity trading advisors’ managed futures programs, is up 3.2%, the best performer of any sub-index among the BarclayHedge CTA indexes.
The index is poised to set its best performance since at least 2010 when it gained 3.38% for the full year, but it’s not likely to beat the 10.35% gain in 2008. There is currently $88 billion under management in the sub group of financial/metals traders, the highest level ever
Investors who want in with these traders need to open a managed account or invest in managed funds. Or, for an easier to flow into – and out of – the gold market there are gold-related ETFs.
The PowerShares DB Gold Fund (DGL) is up more than 25% so far this year but the IShares MSCI Global Gold Miners ETF (RING) has soared 138% and the leveraged Direxion Daily Junior Gold Miners 3x Shares index (JNUG) has rocketed 889%. No surprise, those ETFs that are short gold are doing poorly, for now.