Gold prices have traded in a fairly narrow range around $1,400 an ounce as investors monitor developments in Syria but the largest ETF holding the precious metal is quietly seeing inflows for the first time since early 2013.
SPDR Gold Shares (NYSEArca: GLD) currently holds about 917 metric tons of gold valued at roughly $40.2 billion.
The ETF’s gold holdings recently bottomed at about 909 tons on Aug. 8.
“For the first time since February, we’re starting to see a rise in GLD inflows, its NAV [net asset value]and the closing share price, which indicates that the underlying fundamentals of the gold market remain healthy,” says David Mazza, Head of ETF Investment Strategy for the Americas at State Street Global Advisors.
GLD is down about 19% so far in 2013 with gold on track for its first annual decline in 13 years. State Street is the marketing agent for the ETF.
Yet lower gold prices could provide an opportunity for investors since the underlying investment case for gold still strong, says Mazza.