Gold exchange traded funds erased early losses Friday as the precious metal caught a bid on ramped-up anxiety over Europe’s sovereign debt crisis.
Stock ETFs were selling off and gold was in positive territory after the European Central Bank said executive board member Juergen Stark is stepping down.
Investors were clearly worried about some type of “Lehman event” coming out of Europe over the weekend amid reports Germany was readying its banks for the possibility of a default in Greece. [Euro, Stock ETFs Lower on Debt Jitters]
SPDR Gold Shares (NYSEArca: SPY) pared morning losses and was essentially flat for the session at last check. The $73 billion gold ETF is up 31% so far this year.
Gold demand is expected to strengthen by the end of 2011 after falling in the second quarter, Reuters reported.
SPDR Gold Shares
Full disclosure: Tom Lydon’s clients own GLD.
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