Gold is a smart investment idea amid heightened government deficit spending — and any cuts to interest rates are likely to provide a further tailwind, according to Larry Tentarelli, chief technical strategist and founder of the Blue Chip Daily Trend Report . Gold has been rising as a safe-haven trade thanks in part to yawning U.S. government budget deficits, and is likely to further appreciate owing to a lack of progress in narrowing the deficit, Tentarelli said.
But interest rate futures traders are now pricing in an approximately 59% likelihood that the Fed will lower the borrowing level at its September policy meeting, according to the CME's FedWatch tool. @GC.1 YTD mountain Gold futures year to date in 2024. In that event, investors will want to hold the SPDR Gold Shares ETF, he said. The fund, which aims to track the price gold bullion, has added 13.6% in 2024 after climbing more than 12% last year.