ETFs
Gold and Silver ETFs Shine as Precious Metals Prices Rise
Key takeaways
- Gold and silver ETFs rose as prices of the underlying precious metals hit new highs.
- The SPDR Gold Shares ETF has gained 17.5% this year, largely tracking gold’s surge to new all-time highs.
- The iShares Physical Silver Trust is up 33% in 2024 as the underlying metal hits its highest level in over a decade.
Gold and silver exchange traded funds gained on Monday as the underlying metals hit new highs.
Gold bar prices (GOLD) exceeded $2,450 for the first time Monday, while the money (MONEY) was trading at its the highest level in 11 yearsabout $32
Precious metals were boosted by geopolitical tensions and a weak U.S. dollar after subdued U.S. inflation data last week revived hopes that the Federal Reserve may be able to consider reducing its reference interest rate.
This is good news for exchange-traded funds that hold gold and silver.
All The Glitters includes gold ETFs
SPDR Gold Stock ETF (GLD) – the oldest and largest ETF backed by physical gold, with $64.8 billion in assets at the end of last week – rose 0.4% on Monday and gained 17.5%. so far this year. Shares in another popular gold ETF, the iShares Gold Trust (AIU), also gained 0.4% on Monday and is up 17.6% in 2024.
In recent months, gold prices have risen, supported to a large extent by central bank purchases, particularly in China.
Earlier this year, investors were pulling money out of gold ETFs, according to an analysis by the World Gold Council. However, the recent rally in gold prices may have helped reverse the trend in favor of the yellow metal, with North American gold ETFs seeing net inflows in March and April following massive outflows over the past few years. first two months of the year.
Silver ETFs sparkle
Silver ETFs also rose after a rise in the price of the underlying precious metal.
Trading View
The iShares Physical Silver Trust (SLV), with $12.4 billion in assets, gained 0.7% on the day and is up 33% year to date as retail investors seek diversification.