The SPDR Gold Shares ETF: Highest Inflow in Almost a Year



Fund inflows

While precious metals have seen substantial gains since the beginning of the new year, investments in precious metal funds have also seen positive days. The SPDR Gold Shares ETF (GLD) has increased 15.5% on a year-to-date basis. The iShares Gold Trust ETF (IAU) has surged 15.7% during the same time frame. Investors who get discouraged by the risks of investing in physical bullions often consider investments in managed funds such as ETFs instead.

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The chart above shows the inflows of the SPDR Gold Shares ETF over the past six months. 2016’s fund inflows have already overtaken the outflows for all of 2015. The inflows of GLD rose to as much as 752 tons on Monday, February 22. This is the highest mark seen since March 2015. February 19 saw the biggest single-day inflow since August 2011.

Precious metals rebounded

Along with the rebound in gold prices on February 23, 2016, silver and platinum also witnessed considerable heights. Silver funds’ inflows also rose. Silver and platinum both rose 10.8% and 5.5% on a year-to-date basis.

The sudden rise of inflows in these precious metal funds boosted prices as well. The stock market tumult on Tuesday and the weakness in the US dollar also pushed these stocks higher.

The mining-based stocks that were among the top performers on Tuesday include Harmony Gold (HMY), AngloGold Ashanti (AU), and Barrick Gold (ABX). These three companies gained 5.6%, 5.7%, and 5.6%, respectively. Together, these companies make up 12.1% of the price fluctuations of the VanEck Vectors Gold Miners ETF (GDX). The GDX indicator rose 2.1% on Tuesday.


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