The United States and Canada yield curve inversion forced indexes down sharply late last week. This indicator suggests that there is a 25-30% chance of a recession in the next 12 months.
Major U.S. indexes were down again on Monday, March 25. However, the spot price of gold has regained momentum.
Gold prices dipped slightly and then remained flat for much of the early 2019 rally. However, dovish central banks and the threat of economic turbulence is reigniting interest in the yellow metal. Investors should seek to own gold in their portfolios this spring.
The iShares S&P/TSX Global Gold Index Fund (TSX:XGD) is a suitable target for those looking to exposure to the global gold market. Shares of the ETF were up 1.92% in mid-afternoon trading on March 25.
The fund has climbed 6.7% in 2019 so far. Some of the top holdings in the fund include Barrick Gold, the largest gold producer in the world. It also holds other major miners like Kirkland Lake Gold (TSX:KL), Royal Gold (NASDAQ:RGLD), and Kinross Gold (TSX:K).
Oddsmakers are making it clear that they expect the U.S. Federal Reserve to move away from any rate hikes in 2019. In fact, a rate cut may be in order if economic conditions worsen. This environment will be ripe for gold prices to experience a rally this year and beyond.
The iShares Global Gold ETF offers broad exposure that should entice investors who want gold equities in their portfolio.
