GLD is the largest physically backed gold ETF on the market, providing investors exposure to gold price movement in an easy-to-use investment vehicle. The ETF is backed by physical gold bars stored in London vaults. The gold trust currently holds about 27.2 million ounces of gold, so each SDPR Gold Shares represents fractional ownership of the underlying gold.
Gold bullion has revealed strength in recent weeks, breaking out on a technical basis partly due to a more dovish-than-expected Federal Reserve stance on interest rate policies, trade war speculation that fueled safe-haven bets and a relatively weak U.S. dollar that helped support demand for the USD-denominated gold bullion.
“Holdings in Asian gold-backed ETFs remained in the red, down 1.4t so far this year – this has been primarily the result of Bosera migrating assets from its non-listed to its listed fund,” according to the WGC.
Tom Lydon’s clients own shares of GLD.