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SPDR Gold Trust (NYSE: GLD), the ETF with the largest gold holdings, has climbed 3.31% this week to $167.99 per share, while Market Vectors Gold Miners ETF (NYSE:GDX) has risen 3.31% to $51.41 while iShares Gold Trust..

09 Nov 2012

NEW YORK (Commodity Online): Gold exchange traded funds (ETFs) have gained traction this week following the re-election of Barack Obama as US President which is widely seen as positive for precious metals complex.

SPDR Gold Trust (NYSE: GLD), the ETF with the largest gold holdings, has climbed 3.31% this week to $167.99 per share, while Market Vectors Gold Miners ETF (NYSE:GDX) has risen 3.31% to $51.41 while iShares Gold Trust (NYSE: IAU) has risen 3.30% to $16.87 and Market Vectors Gold Junior Miners ETF has risen marginally to $23.52.

Momentum indicators for GLD, GDX and IAU are not bullish at all but prices may remain positive on strength of the underlier but with Moving Averager Convergence Divergence (MACD )line trending below signal line, and Relative Strenght Index (RSI) below 50, it is still not party time for Gold ETFs, according to Sreekumar Raghavan, Chief Commodity Strategist at Commodity Online.

In October, gold ETF inflows reached 43.8 metric tons, according to Anne-Laure, precious metals strategist at BNP Paribas, with the biggest of the ETFs, the SPDR Gold Shares ETF (NYSE: GLD), capturing 15.5 tons.

SPDR Gold Trust has $75 bn assets under management, while iShares ETF has about $11 billion and an expense ratio of 0.25%, and it stores its gold in vaults in London, New York and Toronto and elsewhere. The Swiss Gold Shares has $2 billion of assets under management, an expense ratio of 0.39%, but it stores its gold in Switzerland.

Recent gold exchange traded fund flows indicate that investors are still bullish towards the metal. There are a number of catalysts remaining within the economy today that support an investment in gold, particularly with an ETF. Also, Europe’s debt crisis isn’t going away anytime soon.

Physical demand in Asian markets may pick up towards mid-November chiefly driven by festival season in India. The nation will celebrate Diwali  (Festival of Lights ) on November 13th when people exchange gifts and burn crackers.


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