Gold ETFs Still Deserve a Place in Long-Term Portfolios

Gold prices rebounded on Thursday after a mid-week dip, supported by a drop in oil prices following a U.S.-Iran interim agreement that eased inflation fears and improved sentiment toward the precious metal.

Gold rose about 0.2% in the latest session and 1.34% over the past five sessions, according to TradingView. Despite a year-to-date decline of roughly 1.4%, the metal has gained about 25.6% over the past 12 months. The recovery came as West Texas Intermediate (WTI) crude fell sharply, dropping about 12.56% over five days and 36.77% over the past month to around $75.4 per barrel. Lower oil prices reduce inflation expectations, which in turn supports gold by easing pressure on central banks to maintain aggressive rate hikes. For gold traders, the recent price action highlights the metal's sensitivity to geopolitical and energy market developments. Those looking to track current gold prices can check NowPrice's gold page for real-time updates.

Looking ahead, the focus will be on the evolving U.S.-Iran situation and its impact on oil supply. A sustained decline in crude could further support gold by keeping inflation in check. Additionally, traders will monitor upcoming U.S. economic data and Federal Reserve commentary for clues on the interest rate path. Gold's long-term appeal remains intact, particularly as a portfolio diversifier and hedge against uncertainty.