Gold prices hit record highs in November last year as investors returned to a popular tracking** exchange-traded (ETF) amid growing hopes that the Federal Reserve (Fed) will ease monetary policy in 2024.
The $57.8 billion SPDR Gold Shares ETF saw net inflows of more than $1 billion in November, on expectations that the US Federal Reserve could start cutting interest rates as early as March.
This was the strongest month for SPDR*** inflows since March 2022, ending a five-month streak of outflows.
The ** closed 2 higher in November5%, but Monday**22%。
Meanwhile, spot** hit an all-time high earlier in the day before surpassing 2% with USD***.
Most people are quite optimistic"Anket Ullal, head of data and analytics at CFRA ETFs, said.
Earlier, U.S. Treasury yields retreated from a 16-year high in October as signs of cooling inflation sparked bets that the Federal Reserve would ease monetary policy. Falling yields tend to increase the attractiveness of a non-yielding asset.
At the same time, the US dollar has lost 35%。A weaker dollar has helped boost commodities, which are priced in dollars and are more affordable to foreign buyers when the dollar depreciates.
Ullal said"If the strengthening of the US dollar slows down, it will be positive for gold prices. "
The SPDR is up nearly 11% year-to-date, lagging the U.S. benchmark S&P 500 by nearly 20%.
Among some other tracking** ETFs, the $26 billion iShares Gold Trust had a net outflow of 3US$88.5 billion, while the US$6.2 billion SPDR Gold Minishares Trust had a monthly net inflow of US$23.6 million.