Gold stock ETFs up two per cent last week
Gold stock funds significantly outperformed physical gold exchange-traded funds last week, according to gold ETF investment site GoldETFS.biz.
This is notable as most gold stock ETFs have lost over 20 per cent of their value this year while physical gold ETFs have gained close to two per cent.
According to Christian Magoon, publisher of Gold ETFs, this move could signal the beginning of a rebound in the performance of gold stocks and the ETFs that track them.
While market sentiment varied throughout last week, a strong rally on Friday set up gold stock ETFs for healthy gains. Top performing gold ETFs included the Global X Gold Exploration ETF, the iShares Gold Miners ETF and the Market Vectors Junior Gold Miners ETF. These ETFs gained as much as 2.8 per cent on the week according to the GoldETFs.biz performance grid.
"Gold stocks have been underperforming the price of gold since February," says Magoon. "The bounce in gold stock ETF performance over the last several days is refreshing. It will be interesting to see if this rally maintains its momentum going forward."
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