Key Takeaways
- Gold and silver ETFs have gained as prices of the underlying precious metals have hit new highs.
- The SPDR Gold Shares ETF has gained 17.5% this year, largely tracking gold’s jump to new all-time highs.
- The iShares Physical Silver Trust is up 33% in 2024 as the underlying metal has hit its highest level in over a decade.
Gold and silver exchange-traded funds gained on Monday as the underlying metals surged to new highs.
Prices for gold bullion (GOLD) topped $2,450 for the first time on Monday, while silver (SILVER) was trading at its highest level in 11 years, around $32
Precious metals have been boosted by geopolitical tensions and weakness in the U.S. dollar after benign inflation data in the U.S. last week boosted hopes that the Federal Reserve could be in a position to consider cutting its benchmark interest rate.
That’s good news for exchange-traded funds that hold gold and silver.
All The Glitters Includes Gold ETFs
SPDR Gold Shares ETF (GLD)—the oldest and largest ETF backed by physical gold, with $64.8 billion in assets at the end of last week—rose 0.4% Monday and has gained 17.5% so far this year. Shares in another popular gold ETF, the iShares Gold Trust (IAU), also gained 0.4% Monday and are up 17.6% in 2024.
In recent months, gold prices have been rising, propped up to a large extent by central bank purchases, especially from China.
Early in the year, investors were pulling money out of gold ETFs, according to analysis from the World Gold Council. However, the recent rally in gold prices may have helped turn the tide in favor of the yellow metal, with North American gold ETFs recording net inflows in March and April after massive outflows in the first two months of the year.
Silver ETFs Sparkle
Silver ETFs were also higher after an increase in the price of the underlying precious metal.
TradingView
The iShares Physical Silver Trust (SLV), with $12.4 billion in assets, gained 0.7% on the day and are up 33% since the start of the year as retail investors look for diversification.