Gold exchange traded funds were higher Tuesday as bullion prices briefly rose above $1,920 an ounce to a new record high on worries over the global economy and Europe’s lingering debt woes.
SPDR Gold Shares (NYSEArca: GLD), the largest gold ETF, added 0.7% in premarket action.
The metal fell sharply during early morning-trading, however, after the Swiss National Bank’s move to force the franc lower, FastMarkets reported. [Swiss Franc ETF in Focus After SNB Move]
“The fear, panic and capital preservation is driving the price of gold higher,” a trader told FastMarkets. “There is complete disarray in Europe with more and more headlines about the Eurozone, investors will want to move to a safe haven investment.”
Gold, which as gained 33% this year, is in the eleventh year of its bull market and its longest winning streak since at least 1920, Bloomberg reported.
Gold exchange traded product holdings fell for a third day on Sept. 2, declining 1.7 metric tons to 2,142.4 tons, the report said.
SPDR Gold Shares
Full disclosure: Tom Lydon’s clients own GLD.