The recent inflows to GLD whittle the ETF’s fourth-quarter outflows to just over $660 million, still among the top 10 for all ETFs this quarter. Year-to-date, GLD and IAU have added about $2.2 billion in new capital on a combined basis.
Tax reform along with other government initiatives coupled with higher interest rates and a stronger dollar are among the factors that could hamper potential upside for gold. The Trump Administration’s tax reform effort is widely seen as the major near-term catalyst for equities, meaning that passage of the initiative could encourage increased risk appetite while weighing on safe have assets like gold.
Tom Lydon’s clients own shares of GLD.