Gold cements its position as an effective portfolio hedge. The demand for gold is strong, supported by investors’ need to hedge currencies in Asia and their desire for a safe haven amid heightened geopolitical tensions. Demand is only expected to grow, with central banks looking to raise their allocation as part of reserve management. The recent drop in cryptocurrency prices presents another opportunity for gold to shine.
Gain exposure to gold; it is a stable asset to hold as a portfolio risk diversifier. We remain constructive on the medium-term outlook for gold, and our forecast for the precious metal remains at USD2,000 per ounce for the rest of the year.
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Search for the below ETF name under the "invest" tab on DBS internet banking.
Gold ETF
Gold ETFs are cheaper alternatives to physical gold and have yielded handsome returns.
We like SPDR Gold Shares and iShares Gold Trust for direct exposure to the precious metal.
They also have large AUM, high liquidity, and relatively low expense ratios.
Gold Miners ETF
VanEck Vectors Gold Miners ETF is our pick to track gold miners. It has a similar AUM and liquidity characteristics as the gold ETFs.
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