Net inflows into SPDR Gold shares hit a new record high of $1.63 billion, the highest since its listing in 2004.
Investors more bullish on gold
One of the world’s largest gold ETFs, SPDR Gold Shares, recently recorded a net inflow of $1.63 billion, the highest since listing in 2004, according to a report. Friday’s record inflow, which comes as both equities and crypto prices have fallen, could be a sign that investors are becoming more bullish on gold, according to the report.
As explained in a recent Bloomberg report, this increase in net inflows into SPDR Gold shares is equivalent to 27.6 tonnes of the precious metal. The jump in SPDR Gold Shares’ ETF net inflows comes as the world braces for a resumption of interest rate hikes by the US Federal Reserve, which an earlier report by Bitcoin.com News appears to be heading for. towards the end of major asset purchases.
In addition to impending rate hikes from the US Federal Reserve, gold demand has been fueled by growing global tensions over rumors of Russian plans to invade Ukraine.
Static Gold Price
However, despite the rise in net inflows into the gold ETF, analyst Daniel Briesemann is quoted in the Bloomberg report expressing surprise at the precious metal’s inability to take advantage of the ETF’s strong inflows.
“We find it very surprising that the price of gold has failed to take advantage of strong ETF flows. This week, market participants will likely focus primarily on the US Fed meeting,” says Briesemann, an analyst at Commerzbank.
Although considered by many to be a reliable alternative store of value, gold was unable to protect its holders from the effects of the US Federal Reserve’s quantitative easing after its price ended 2021 near 4 % less than it started. By contrast, bitcoin and other cryptocurrencies ended the year with double-digit or higher gains.
However, as cryptocurrencies and stocks continue to decline, some investors are considering holding the precious metal again. As of this writing, gold is trading at around $1,842 an ounce, nearly one percent higher than its December 31 price of $1,828.
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