Investors Flock To The SPDR Gold ETF (GLD) As The Market Prices In Earnings Reports
“Gold futures ended higher Monday, edging up to touch a fresh four-month record high and shake off early weakness on dollar strength and continued investor enthusiasm for bullion. Gold for June delivery, the most active contract, gained 30 cents, or 0.3%, to $1,162.20 an ounce on the Comex division of the New York Mercantile Exchange. The contract earlier hit an intraday high of $1,170.70 an ounce,” Claudia Assis Reports From MarketWatch.
“This market is taking whatever it can to go higher,” said Frank Lesh, a broker and futures analyst with FuturePath Trading in Chicago.
“In a measure of continued investor interest in gold, the SPDR Gold Trust (NYSE: GLD) , the largest exchange-traded fund backed by gold, reported Monday a net inflow of nearly $427 million in the week ended April 5, the latest available information. That was the highest weekly inflow since at least late February. The ETF last week reported that its holdings rose by 10 tons to 1,140.4 metric tons (1,257.08 short tons), the most since June,” Assis Reports.
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Assis goes on to say, “Holdings have increased 0.6 tons from Thursday and now stand at 1,141.04 metric tons (1, 257.78 short tons), according to fund data. Dollar weakness was certainly helping gold, particularly as short-term traders work with that inverse relationship in mind. Unlike last week, when dollar weakness itself fed safe-haven buying for gold, this time some buyers may be also loading up on gold at the onset of earnings season “just in case,” Lesh said.”
Investors have turned to gold ETFs since the economy has been in uncertain times. They offer a great way to protect you against risk in your portfolio during uncertain times. We have put together some other ETF options for your viewing below:
LONG:
The investment ETF (GLD) seeks to replicate the performance, net of expenses, of the price of gold bullion. The trust holds gold, and is expected to issue baskets in exchange for deposits of gold, and to distribute gold in connection with redemption of baskets. The gold held by the trust will only be sold on an as-needed basis to pay trust expenses, in the event the trust terminates and liquidates its assets, or as otherwise required by law or regulation.
The investment ETF (GDX) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the AMEX Gold Miners index. The fund generally normally invests at least 80% of its total assets in common stocks and American depositary receipts (ADRs) of companies involved in the gold mining industry. The fund is nondiversified.
The Funds ETF (GDXJ) investment objective is to replicate as closely as possible, before fees and expenses, the price and yield performance of the Market Vectors Junior Gold Miners Index (the “Junior Gold Miners Index”). For a further description of the Junior Gold Miners Index, see “Junior Gold Miners Index.”
The objective of ETF (SGOL) the newly listed shares is to reflect the performance of the price of Gold bullion, less the Trust’s operating expenses. The Trust is open ended and is designed for investors who want a cost-effective(1) and convenient(2) way to invest in Gold as well as diversify their Gold holdings.
The investment ETF (UGL) will seek to replicate, net of expenses, twice the performance of gold bullion as measured by the U.S. Dollar p.m. fixing price for delivery in London. The fund normally invests assets in financial instruments with economic characteristics twice the return of the index. It may employ leveraged investment techniques in seeking its investment objective.
The investment ETF (DGL) seeks to track the price and yield performance, before fees and expenses, of the Deutsche Bank Liquid Commodity Index – Optimum Yield Gold Excess Return. The index is a rules-based index composed of futures contracts on gold and is intended to reflect the performance of gold.
The investment ETF (DGP) seeks to replicate, net of expenses, twice the daily performance of the Deutsche Bank Liquid Commodity index – Optimum Yield Gold Excess Return. The index is intended to reflect changes in the market value of certain gold futures contracts and is comprised of a single unfunded gold futures contract.
The objective ETF (IAU) of the trust is for the value of its shares to reflect, at any given time, the price of gold owned by the trust at that time, less the trust’s expenses and liabilities. The trust is not actively managed. It receives gold deposited with it in exchange for the creation of baskets of iShares, sells gold as necessary to cover the trust’s liabilities, and delivers gold in exchange for baskets of iShares surrendered to it for redemption. The trust is not an investment company registered under the Investment Company Act of 1940 or a commodity pool for purposes of the Commodity Exchange Act.
SHORT:
The investment ETF (DZZ) seeks to replicate, net of expenses, twice the inverse of the daily performance of the Deutsche Bank Liquid Commodity index – Optimum Yield Gold Excess Return. The index is intended to reflect changes in the market value of certain gold futures contracts and is comprised of a single unfunded gold futures contract.
The investment ETF (GLL) will seek to replicate, net of expenses, twice the inverse daily performance of gold bullion as measured by the U.S. Dollar p.m. fixing price for delivery in London. The fund normally invests assets in financial instruments with economic characteristics inverse to the index. It may employ leveraged investment techniques in seeking its investment objective.
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