Gold had been written off as an asset class late last year as the Federal Reserve was about to raise its benchmark interest rates for the first time in nearly a decade. It was Fed’s ultra-loose monetary policy that had sparked a multi-year rally in gold and pushed the precious metal to an all-time high above $1,900 an ounce.
However, as the Fed began to wind down its bond purchase program in 2014, gold lost favor among investors. The precious metal though has bounced back sharply since the beginning of this year as volatility in global markets boosted its safe-haven appeal. To add to this, the Fed has reiterated that it will be cautious with future rate hikes.
Earlier today, gold hit a 15-month high, crossing $1,300 an ounce. With investors once again turning bullish on gold, Canadian investors should consider the Horizons Beta COMEX Gold Bull Plus ETF (TSX: HBU). The ETF seeks daily investment results that endeavor to correspond to two times the daily performance of the COMEX Gold Bullion Index. The ETF has gained more than 28% in the last three months. The ETF today hit a 52-week high of $9.72.
