“The hike in taxes on gold sales could pressure short-term demand from the world’s second largest consumer of the metal, the World Gold Council said on Thursday. In top consumer China, premiums ranged between $9 and $10 an ounce, mostly unchanged from $9-$11 last week, traders said,” according to Business Recorder.
Related: Rising Inflation Could Create a Catalyst for Gold ETFs
Gold has enjoyed greater demand in a low interest-rate environment as the hard asset becomes more attractive to investors compared to yield-bearing assets. However, traders lose interest in gold when rates rise since the bullion does not produce a yield.
In the second quarter, investors added almost $874 million in new capital to GLD. Year-to-date, the ETF has seen inflows of $861 million.
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