Gold ETF Hits 12-Year High Volume as Prices Near $4,200
Investor demand for the SPDR Gold Shares (GLD) ETF surges, driven by a nearly 57% rally in the underlying metal over the past year amid economic uncertainty.
The SPDR Gold Shares (GLD), the world's largest exchange-traded fund backed by physical gold, has experienced its highest trading volume in 12 years, signaling a massive influx of investor interest in the precious metal.
The surge in activity comes as the price of gold has soared nearly 57% over the past year, with the yellow metal steadily approaching the $4,200 per ounce mark. This remarkable rally has pushed trading volumes for GLD to levels not seen in over a decade, at times , a clear indicator of a significant capital rotation into hard assets.
Driving the investor flight to gold is a potent mix of geopolitical instability, persistent inflation concerns, and growing expectations that the U.S. Federal Reserve will begin cutting interest rates. decrease the opportunity cost of holding non-yielding assets like gold, enhancing its appeal.
This renewed demand has been reflected in massive inflows into gold-backed ETFs. In September, global gold ETFs saw their largest monthly inflows, contributing to the strongest quarter on record. According to the , ETF trading volumes in the sector surged to an average of $8 billion per day.
The powerful uptrend has prompted bullish forecasts from market observers. Several analysts have upgraded their ratings on GLD, with some quant models pointing to a 'Strong Buy' and technical analysis suggesting continued positive momentum. With central banks continuing their gold purchasing spree and investors seeking a reliable hedge, the outlook for the precious metal remains robust. Some forecasters now see a path for gold to top $5,000 an ounce in the coming years, viewing any price pullbacks as potential buying opportunities.