Gold ETFs are finally joining the party
Gold prices hit a record $2,788 an ounce on Oct. 30
Main Street Asset Management chief investment officer Erin Gibbs discusses whether the U.S. dollar is at risk of losing its world reserve currency status on 'Making Money.'
As gold prices continued to defy the odds, hitting new all-time highs, exchange-traded funds linked to the precious metal were not part of the party – until now.
"Western-listed gold ETFs have finally started to stir, leading to the first quarter of global inflows since Q1 2022," according to the World Gold Council’s "Gold Demand Q3 2024" report.
Gold prices hit a record $2,788 an ounce on Oct. 30. Since then, they have drifted lower, but they remain near the peak. The precious metal has gained more than 30% this year.
Last month, $4.3 billion flowed into physically backed gold ETFs. In U.S. dollar value, global gold assets under management are now around $286 billion.
State Street's SPDR Gold Trust ETF, the largest to be backed by physical gold, has attracted over $1 billion in new inflows year-to-date, the firm tells FOX Business, adding, "This stretch of positive inflows for gold ETFs is one month away from being the longest streak of inflows since 2020, when pandemic-related uncertainty caused investors to rush into gold."
Largest Physically Backed Gold ETFs: VettaFi
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GLD | SPDR GOLD SHARES TRUST - USD ACC | 237.65 | -2.45 | -1.02% |
| IAU | ISHARES GOLD TRUST - USD DIS | 48.59 | -0.50 | -1.02% |
| GLDM | SPDR® GOLD MINISHARES® TRUST - USD ACC | 50.99 | -0.52 | -1.01% |
| SGOL | ABRDN PHYSICAL GOLD SHARES ETF - USD ACC | 24.57 | -0.25 | -0.99% |
With President-elect Donald Trump readying to return to the White House, investors may see rising volatility, but the Federal Reserve can steady the train.
FEDERAL RESERVE CUTS INTEREST RATES AGAIN
Donald Trump gestures during a campaign rally at PPG Paints Arena in Pittsburgh, Pennsylvania on November 4, 2024. (Charly Triballeau/AFP via Getty Images / Getty Images)
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"Should the Federal Reserve deliver on its projected rate path, then all else being equal, we would expect interest in ETFs to continue with the added catalysts of elevated fiscal deficits and richly valued equity markets," the World Gold Council added.
FED CHAIR POWELL NOT GOING ANYWHERE EVEN IF TRUMP HAS ANOTHER IDEA
Jerome Powell, chairman of the U.S. Federal Reserve, during a news conference following a Federal Open Market Committee (FOMC) meeting in Washington, D.C., on Thursday, Nov. 7, 2024. The Federal Reserve cut its benchmark lending rate by a quarter per … (Ting Shen/Bloomberg via Getty Images / Getty Images)
Fed Chairman Jerome Powell, on Thursday, did just that.
"Our baseline expectation is that will continue to move gradually down towards neutral if the economy will continue to grow at a healthy clip and that the labor market will remain strong," he said during his press conference after policymakers cut interest rates by 25 basis points.
Over 64% of market participants say the Fed will likely cut interest rates by 25 basis points again in December, according to the CME’s FedWatch Tool, which predicts future rate moves. Even more are likely in 2025.