American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Investing

Here’s why the GLD ETF is surging and what to expect

by admin February 10, 2025
February 10, 2025
Here’s why the GLD ETF is surging and what to expect

Gold price extended its gains to hit a fresh all-time high on Wednesday at $2,878.68 before pulling back to $2,860.05 at the time of this publication. The precious metal is trading in the green for the six consecutive week as investors remain apprehensive over President Trump’s policies. The latest trigger is China’s retaliatory measure to Trump’s tariffs; an aspect that has heighntened the demand for safe-haven assets. 

As the bullion rallies, major gold ETFs have recorded significant gains. At the time of writing, SPDR Gold Trust EFT (GLD) was at $264.13, having surged by about 8% since the beginning of 2025.

Global gold demand hits record high in Q4’24 and FY24

As a conventional safe haven, gold price has found support in the ongoing economic and geopolitical uncertainties. In fact, in the World Gold Council (WGC) annual report released on 5th February, these uncertainties largely contributed to the bullion’s demand reaching a record high in 2024. 

The global head of central banks at WGC, Shaokai Fan noted, “In 2024, global gold demand surged to a new quarterly high and a record annual total bolstered by heightened geopolitical and economic uncertainties”.  

The total transactions in 2024, including over-the-counter investments, were at 4,974 tonnes compared to 4,899 tonnes in the previous year. Besides, overall investment in the precious metal surged by 25% on a year-over-year basis, reaching a 4-year high at 1,180 tonnes. 

WGC notes that this surge was largely bolstered by gold ETFs. China and India also recorded strong demand for physical gold bars and coins. OTC investments were also steady as high netw-worth sort for a hedge against the prolonged economic and geopolitical risks. 

Besides, central banks’ appetite for the asset remained “insatiable” with purchases from the institutions exceeding 1,000 tonnes for the third year in a row. The National Bank of Poland and the Central Bank of the Republic of Turkey topped the list by adding 90 tonnes and 75 tonne to their gold reserves respectively. The Reserve Bank of India came in third; making monthly purchases consistently except for December. 

In the report, the council’s senior markets analysts, Louise Street forecasts, “In 2025, we expect central banks to remain in the driving seat and gold ETF investors to join the fray, especially if we see lower, albeit volatile interest rates”. 

GLD ETF to find support in the increased demand for safe-haven assets 

On a broader scale, SPDR Gold Shares will find support in the steady investment demand expected to shape the gold market in 2025. At the same time, the high appetite for safe haven assets is set to bolster the gold ETF in the short term.

At the moment, the market’s participants are concerned over the looming US-China trade war after Beijing announced an array of retaliatory measures to Trump’s tariffs. Interestingly, the US President appears not to be in a hurry to reach a mutually beneficial deal with President Xi Jinping. 

An escalation of the trade war may have Trump make true his prior promise of imposing tariffs of upto 60% on Chinese goods; a move that would catapult GLD ETF and the broader gold market to new heights. 

On the flip side, the market’s participants are concerned that Trump’s policies will be inflationary; pushing the Fed to maintain higher interest rates for longer. In such an environment, the opportunity cost of holding the non-yielding bullion tends to be higher. That would curb SPDR Gold Shares gains as the Treasury yields surge.

GLD ETF stock price analysis

GLD stock by TradingView

The daily chart reveals that the GLD ETF stock has been in a strong bull run. It recently moved above the key resistance level at $257, its highest level in October last year. 

The fund has moved above the upper side of the bullish pennant pattern, a popular bullish sign. GLD has remained above all moving averages. Therefore, the fund will likely continue rising as bulls target the key resistance at $300. 

The post Here’s why the GLD ETF is surging and what to expect appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Here’s why the Porsche stock price has imploded
next post
What is the total US debt, and who owns it?

Related Posts

Top 4 S&P 500 stocks to buy Polymarket...

April 4, 2025

Will the falling Hims & Hers stock price...

December 23, 2024

Miniso stock outlook: is this Chinese retailer a...

September 25, 2024

3 reasons the Rolls-Royce share price may soar...

February 25, 2025

Spotify stock price could drop to $387 as...

December 23, 2024

Takeaway of Rolls-Royce earnings and impact on its...

July 31, 2025

XRP price prediction: Risky Despite RLUSD and Ripple...

October 3, 2024

EUR/USD forecast: signal ahead of the FOMC minutes

July 5, 2025

SPCE stock analysis: is it safe to buy...

November 11, 2024

Here’s why the Brent crude oil price could...

April 21, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • How Donald Trump’s immigration crackdown may tank the labor market

      August 4, 2025
    • Trump’s tariff threat looms over India’s Russian oil deals

      August 4, 2025
    • Trump moves nuclear submarines near Russia: what triggered the move and what’s ahead

      August 3, 2025
    • BOE rate cuts offer little relief as UK households face mounting financial strain

      August 3, 2025
    • Retail investors shift focus to Europe as US valuations stretch

      August 3, 2025

    Categories

    • Business (3,583)
    • Investing (2,703)
    • Latest News (2,031)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved