Investors have been piling into gold exchange traded funds as they chase prices higher.
Bullion held in exchange traded products on Monday rose nearly 1% to 2,120.5 metric tons, the most ever, Bloomberg reported.
The $64.3 billion SPDR Gold Shares (NYSEArca: GLD), the largest gold ETF by assets, slipped fractionally Tuesday. The ETF entered the session on a 10-day winning streak.
Gold futures were hovering just above $1,600 an ounce on Tuesday.
“Gold has had its longest sustained move to the upside in 30 years,” Street One Financial said in a report Tuesday, adding investors have been looking for safety as the metal moves to new highs. Meanwhile, recent trading in options on the gold ETF has been active “with mostly protective flows.” In other words, traders are likely hedging in case of an end to the recent run-up, Street One said.
Gold has climbed to record highs on uncertainty surrounding Europe’s finances and the U.S. debt ceiling. [Precious Metals ETFs Rally]