SPDR Gold Shares Records Weekly Outflow of $1.6 Billion

The SPDR Gold Shares ETF recorded an estimated weekly outflow of $1.6 billion, according to an estimate published by ETF Channel, in the latest indication of a section of investors abandoning the metal.

The number of outstanding shares in the fund fell by 1.2% from 369.6 million shares to 365.3 million, representing a decline of 4.3 million shares. The fund is the world's largest gold exchange-traded fund (ETF), so its flows are closely monitored as a gauge of institutional investors' behavior.

ETF Channel said the 1.2% decline in shares outstanding indicates that redemptions exceeded creations during the week, and that the $1.6 billion figure is an estimate of the value of the net shares redeemed rather than total purchases and sales of GLD shares. It noted that GLD holds gold bullion rather than a portfolio of stocks, and that a decline in shares outstanding does not by itself show how or when an authorized participant may trade gold in the broader market.

The report did not provide an explanation for the week's redemptions. GLD last traded at $370.02, compared with a 52-week low of $360.12 and a 52-week high of $509.70, and the report said the 200-day moving average provides a longer-term price reference but does not explain the cause of the week's redemptions.

What Do These Terms Mean?

Exchange-Traded Fund (ETF): An investment fund traded on a stock exchange like shares, tracking the price of a commodity or index instead of buying the underlying asset itself.

Outflow: The net money withdrawn by investors from a fund during a specific period, contrasted with inflows when buying.

Outstanding Shares: The number of fund shares currently available for trading, which changes when new shares are issued or existing shares are canceled.