Gold is on a rapid surge. The metal has now become one of the leading safe-haven assets to explore, helping the asset surge in price. At the same time, the Gold ETF domain is also witnessing a surge in demand, with investors exploring the asset at a rapid pace. Is this signaling a new market development, an opportunity that can serve investors a new high-demand domain to extract gains from? Here are three reasons why missing out on gold ETFs might be the biggest mistake investors can make right now.

Also Read: Gold (GC=F) Price Beats $3,800 Record: Is $4k in Reach?

Three Reasons Why Investors Should Explore Gold ETFs Now

1. Gold ETFs on the Rise as Dollar Weakens

USD BILL
Source: Pixabay

According to the recent post uploaded by the Kobeissi letter, gold ETFs are rising at an explosive rate. Global gold ETFs have risen by 27+ tonnes on Friday, marking a new milestone in work. Due to this, gold ETFs have also witnessed a sharp spike, increasing 0.9% in a single day since 2022.

“Gold demand continues to surge: Global gold ETF holdings rose by +27 tonnes on Friday, the biggest daily increase since January 2022. This is DOUBLE the daily average seen so far this year. As a result, gold-backed ETFs increased 0.9%, the largest single-day percentage gain since 2022. Gold prices are now on track for their 6th consecutive weekly gain, the longest streak since February. Meanwhile, daily options volume of the largest silver ETF, $SLV, spiked to 1.2 million shares on Friday, the highest since April 2024. Precious metals are making history.”

With recent projections of the US dollar continuing to weaken due to Trump tariffs and new economic policies, gold is now becoming a safe-haven asset to explore at the moment.

2. Central Banks’ Gold Buying Spree

Gold bars
Source: Unsplash

Global banks around the world are rapidly exploring gold. This development shows gold is now becoming the fastest reserve asset to captivate global banks and markets, as the US dollar continues to decline. The USD is weakening due to loose US economic policies and the rising US debt metrics, and Trump’s tariffs, all of which have added intense pressure on the USD to maneuver in due time.

3. Volatile Fed Stance

Source: CNBC

The Federal Reserve has hinted at multiple rate cuts this year, per a recent report by Reuters. Speculations about the Federal Reserve slashing interest rates this year are directly impacting the USD’s value proposition and stance. This development is again adding more pressure on the dollar, pushing investors to explore gold and gold ETFs at a rapid pace.

Also Read: Goldman Sachs Raises S&P 500 Target to 7,200

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