SPDR Gold Trust Benefits from Equity, Oil Price Weakness

Bloomberg reported that assets in the SPDR Gold Trust (ARCA:GLD) rose Tuesday at their fastest pace since July as poor energy prices led investors to sell equities across the globe. Holdings in the ETF are up nearly 1 percent in December.

As quoted in the market news:

‘The reversal in the equity market has created some volatility, and that’s translating into a little bit of fear and a bid for gold,’ Charlie Bilello, the director of research who helps oversee $220 million of assets at New York-based Pension Partners LLC, said in a telephone interview. ‘An added bonus has been the weakness in the dollar. A combination of all this is pushing people towards gold.’

Assets in the SPDR fund, which counts billionaire John Paulson as its biggest holder, yesterday climbed 2.99 metric tons, or 0.4 percent, to 724.80 metric tons, the biggest increase since July 4. The holdings rose 2.7 tons the prior day.

Click here to read the full Bloomberg report.