Higher interest rates slam gold prices in the short term. That's the bad news. The good news is that central banks don't trade gold like hedge funds – and they’re buying. One easy way to own physical bullion is the SPDR Gold MiniShares Trust (GLDM), writes Sean Brodrick, editor at Weiss Ratings Daily.
The World Gold Council recently surveyed 76 central banks. A whopping 89% expect global central-bank gold reserves to increase over the next 12 months. And a record 45% say they expect their own institution to buy more.
(Editor’s Note: Sean is speaking at the 2026 MoneyShow/TradersEXPO Orlando, scheduled for Oct. 5-7. Click HERE to register.)
Meanwhile, 74% expect the US dollar’s share of global reserves to decline over the next five years. That's quite a vote of confidence in gold. And this brings us back to the recent sell-off.
Central banks aren’t worried about what the Fed might say soon. They're restructuring reserves for a world that may look very different five or 10 years from now. Goldman expects central banks to buy an average of 50 tonnes per month this year — nearly three times the pre-2022 pace.
So yes, Western traders are selling gold because they're worried about what interest rates will do over the next few months. But central banks are buying. That's why I view this correction as an opportunity to watch for, not something to panic over.
GLDM holds physical gold in London vaults, has about $32 billion in assets, and charges an expense ratio of just 0.10%. Better yet, it currently earns a Weiss Rating of "B-."
It’s spent most of this year consolidating. That worked off froth and left it positioned for its next big move. A move I believe will be much, much higher.
Recommended Action: Buy GLDM.
