The biggest gold-backed exchange-traded fund posted record-high inflows as equities lose support, Bloomberg reported.
SPDR Gold Shares recorded $1.63-billion worth of net inflows, reflecting the highest since its listing 17 years ago in 2004. Changes in holdings are seen as an indicator of interest in longer-term bets on gold.
Demand is driven by the drop in equities, along with the geopolitical tensions between the United States and Russia over Ukraine, along with the nosedive in the prices of Bitcoin.
The latest surge for gold came after a decline in 2021 when the SPRD Gold Shares ETF recorded an eight-year high annual outflow in terms of tonnage. Last Friday’s net inflow was equivalent to 27.6 tons.
The latest surge comes ahead of the Federal Reserve meeting, which could possibly indicate a start for rate hikes in March. GLD is up 0.45% premarket.