Inflow in GLD
Gold futures on COMEX, a commodity division of NYMEX, rose 0.60% to $1,131.53 per ounce. They saw a flat trading day price of $1,121 per ounce. Silver futures also gained a miniscule 0.22% and traded at $14.78 per ounce. Globally, investors are likely entering into a risk-off trade. Also, they’re reluctant to add safe-haven assets to their portfolio due to a probable rate hike.
Gold ETF investments like the SPDR Gold Trust ETF (GLD) was trading at $108.20. It rose 0.40% on September 23. Inflows into GLD, the world’s largest gold-backed ETF, supported its prices. The fund’s holdings rose to 675.80 tonnes on Tuesday—the first inflow in almost a month. Leveraged ETFs like the Direxion Daily Gold Miners 1 (NUGT) rose and covered its losses substantially. It rose 3.86% on a 30-day trailing basis.
The above price chart shows the price fluctuation for GLD in the past week.
Tracking the miners
Gold futures’ prices rose on a five-day trailing basis by nearly 1%. The rise has offset some of the previous losses that crippled miners’ equity. Mining investments that have also gained on a five-day trailing basis include Agnico-Eagle Mines (AEM), Eldorado Gold (EGO), Centerra Gold (CG), and First Majestic Silver (AG). They rose 6.01%, 5.96%, 6.54%, and 3.13%, respectively. Together, the four stocks account for ~11% of the VanEck Vectors Gold Miners ETF (GDX). GDX lost a miniscule 0.35% due to the negative performance of most of the mining companies that make up the ETF.
When discussing ETFs, it’s important to know that hedge funds are one of the biggest reasons why ETFs are growing. GLD is the world’s largest ETF backed by physical holdings of gold. Also, it was the second-most popular ETF among hedge funds. Almost 49 hedge funds have a stake in this ETF as of mid-August.