Why tracking ETF holdings is important

Investors looking to gauge gold’s price outlook should monitor flows into and out of gold ETFs. While outflows from gold ETFs led to a ~28% fall in gold prices in 2013, ETF inflows supported gold prices in 2016 and 2017. When sentiment turns, prices can easily go the other way, leading to a huge sell-off.

Gold ETF Holdings Climb to a 5-Year High, Supporting Prices

ETF holdings on a rise

Gold ETF holdings are on a rise. According to data compiled by Bloomberg, gold ETF holdings rose to a total of 2,250 tons on January 22, 2018, the highest level seen since May 2013. Gold’s rise in the new year has encouraged investors to pile into the metal. Concerns regarding US policies, which led to a government shutdown and weaker US dollar, have kept the metal buoyant in the new year. Investors may also be drawn to gold because inflation seems to be picking up the pace, as indicated by December 2017 data.

ETF holdings and gold price

The SPDR Gold Shares ETF (GLD) and the iShares Gold Trust ETF (IAU) have risen almost 3% this month. An early-stage recovery in gold could prompt a full-fledged bull market. Concerns regarding peaking stock markets, rising inflation, and geopolitical issues could be key factors behind such a recovery.

A further recovery in prices would support stock prices of gold companies such as Barrick Gold (ABX), AngloGold Ashanti (AU), B2Gold (BTG), and Yamana Gold (AUY). Collectively, these four stocks form 13.7% of the VanEck Vectors Gold Miners ETF (GDX).

Latest articles

Today, Canopy Growth announced that it acquired the Saskatchewan-based KeyLeaf Life Sciences along with entities relating to the company and its intellectual property. Here's what you need to know about the completed deal.

Yesterday, Tyson Foods (TSN) and fellow meat producers Pilgrim’s Pride (PPC) and Sanderson Farms (SAFM) took a hit to their stocks after news came out about an investigation over price-fixing allegations.

On June 24, RH (RH) was trading at $115.01, implying a rise of 21.2% since its announcement of its first-quarter earnings results on June 12. Despite the surge in its stock price, the company is still trading at a discount of 29.1% to its 52-week high.

26 Jun

Roku Stock Fell Close to 7.0% Yesterday

WRITTEN BY Aditya Raghunath

Roku stock fell 6.8% yesterday to close trading at $93.25 per share. Roku stock has lost over 9.0% in market value in the last two trading days. Prior to this pullback, Roku stock was up a whopping 235.0% year-to-date.

26 Jun

Beyond Meat Stock Up Today on New Product Launch

WRITTEN BY Rajiv Nanjapla

Today, Beyond Meat (BYND) announced that its new product, Beyond Beef, will hit markets across the US later this week.

FedEx (FDX) ended fiscal 2019 on a dismal note and reported a significant YoY decline in fourth-quarter earnings. The delivery giant posted adjusted EPS of $5.01, which was 15.2% lower than the year-ago quarter’s earnings of $5.91. The company cited sluggish revenue growth and increased expenses as the main reason behind the dismal bottom-line performance.