SPDR Adds 5.1 Tonnes, Raising Its Gold Holdings to 1,059 Tonnes
Gold closed at $4,166.1, down 0.7% weekly, while the SPDR fund bought 5.1 tonnes, raising its holdings to 1,059 tonnes.
Gold ended the week lower, closing in New York at $4,166.1 per ounce, down $5 or 0.12% for the day, and down 0.7% over the week, while December gold futures rose 0.3% to $4,181.1.
In contrast, the gold-backed SPDR Gold Trust exchange-traded fund boosted its holdings, purchasing a net 5.1 tonnes on Friday to bring its total holdings to 1,059 tonnes, achieving a net weekly purchase of about 6 tonnes after selling around 3 tonnes the previous week.
Bart Melek of TD Securities said the lack of clarity regarding US interest rate policy has kept gold range-bound near lower support levels, while Hamad Hussain of Capital Economics believed the metal could weaken as the Federal Reserve continues to raise interest rates.
Futures pricing indicates an 83% probability that the Fed will keep interest rates unchanged at its scheduled meeting on October 27 and 28, up from around 72% previously.
What Do These Terms Mean?
Ounce: A unit of weight for precious metals equal to approximately 31.1 grams, and it is the standard unit used for pricing gold globally.
Exchange-Traded Fund (ETF): An investment fund traded on stock exchanges like shares that tracks the price of gold, allowing you to buy a share instead of holding the physical metal itself.
Futures Contracts: An agreement to buy or sell a commodity at a specified price today for delivery at a later date, used for hedging or speculation.
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