Erin Gibbs, chief investment officer at Main Street Asset Management, discusses whether the U.S. dollar is at risk of losing its status as the world's reserve currency on “Making Money.”
As gold prices continue to defy expectations and hit new all-time highs, exchange-traded funds (ETFs) tied to the precious metal have so far stayed out of the picture.
According to the World Gold Council's “Gold Demand in Q3 2024'' report, “Western-listed gold ETFs are finally starting to take off, leading to the first quarter of global capital inflows since Q1 2022.'' “Ta”.
Gold prices hit a record of $2,788 per ounce on October 30th. Prices have fallen since then, but are still near all-time highs. Precious metals have risen more than 30% this year.
Physically backed gold ETFs saw $4.3 billion in inflows last month. In US dollar terms, global gold assets under management are currently approximately $286 billion.
State Street's SPDR Gold Trust ETF is the largest ETF backed by physical gold, attracting more than $1 billion in new inflows year-to-date, the company told FOX Business. This positive inflow will continue for a month,” he added. The longest streak of inflows since 2020, when pandemic-related uncertainty sent investors rushing into gold, is fading away. ”
Largest Physically Backed Gold ETF: VettaFi
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| GLD | SPDR Gold Share Trust – USD ACC | 247.96 | -1.69 |
-0.68% |
| IAU | ISHARES Gold Trust – USD DIS | 50.70 | -0.35 |
-0.69% |
| GLDM | SPDR® Gold MiniShares® Trust – USD ACC | 53.21 | -0.36 |
-0.67% |
| SGOL | ABRDN Physical Gold Stock ETF – USD ACC | 25.64 | -0.18 |
-0.70% |
Investors may expect increased volatility as President-elect Donald Trump prepares to return to the White House, but the Federal Reserve could steady the train.
Federal Reserve cuts interest rates again
Donald Trump gestures during a campaign rally at PPG Paints Arena on November 4, 2024 in Pittsburgh, Pennsylvania. (Charlie Tribalew/AFP via Getty Images/Getty Images)
ETFS Latest Information: FOXBUSINESS.COM
The World Gold Council says, “If the Federal Reserve achieves its expected interest rate path, all else being equal, the additional factors of rising budget deficits and strong stock market valuations will drive interest in ETFs.'' is expected to continue,” he added.
Fed Chairman Powell isn't going anywhere, even if Trump thinks otherwise
U.S. Federal Reserve Chairman Jerome Powell during a press conference after the Federal Open Market Committee (FOMC) on Thursday, November 7, 2024 in Washington, DC. The Federal Reserve has cut its benchmark lending rate by a quarter per year. (Ting Sheng/Bloomberg via Getty Images/Getty Images)
Federal Reserve Chairman Jerome Powell did just that on Thursday.
“If the economy continues to experience healthy growth and the labor market remains strong, policy rates will continue to gradually decline toward neutrality,” he said at a news conference after policymakers cut interest rates by 25 basis points. That is our basic prediction.” .
More than 64% of market participants say the Fed is likely to cut interest rates by 25 basis points again in December, the paper said. CME's FedWatch tool, Predict future interest rate movements. There could be more in 2025.
