Professional traders at Wall Street firms are putting a record amount of money into %Gold exchange-traded funds (ETFs) as the price of the precious metal hits new all-time highs.
Data from %JPMorganChase (NYSE: $JPM) shows that gold ETFs saw record inflows of $4.50 billion U.S. over the past week, led by purchases of the SPDR Gold Shares ETF (GLD).
The stampede into gold ETFs comes as the geopolitical outlook grows more uncertain, stocks continue to slump, and the price of gold trades at close to $3,000 U.S. per ounce.
Trade uncertainty and increasing worries about inflation are also driving traders into the safety of gold, says JPMorgan.
Gold is known as a safe haven asset and often thrives during periods of geopolitical and market uncertainty such as now.
For many traders and investors, the preference is to own an ETF that tracks the spot price movements of gold rather than to own physical gold.
State Street Global Advisors Gold ETF, known by its ticker symbol “GLD,” is the oldest and largest of the gold ETFs, with a market capitalization of $81 billion U.S.
So far this year, the GLD ETF is up 10%, mirroring the gain in gold’s price.
At its current price of $2,900 U.S. per ounce, many analysts are bracing for the precious metal to surpass $3,000 U.S. an ounce for the first time ever.
