SPDR Gold Shares ETF Rallies 2.09% After Gold Dips Below $4,000
GLD•The SPDR Gold Shares ETF rose 2.09% while the S&P 500 fell 0.39%, highlighting its historic non-correlation during equity sell-offs. Central banks’ shift from US Treasuries into gold reserves and a dip below $4,000 per ounce have reignited debate over increasing GLD exposure.
1. ETF Performance During Equity Retreat
The SPDR Gold Shares ETF climbed 2.09% on July 2 as the S&P 500 slid 0.39%, underscoring the fund’s track record of holding value when equities falter. Gold futures rose 0.93%, trading above $4,120 per ounce and bolstering demand for the ETF as a defensive position.
2. Central Banks Reallocating Reserves to Gold
Major central banks have trimmed US Treasury allocations this quarter and redirected significant capital into gold holdings, driving fresh inflows into gold-backed ETFs. This strategic pivot reflects concerns over interest rate risk and currency valuation, reinforcing gold’s role as a reserve asset.
3. Gold’s Sub-$4,000 Price Spurs Buying Debate
Gold futures briefly dipped below $4,000 per ounce before rebounding above $4,100, prompting investors to weigh whether the pullback represents a long-term buying opportunity. Analysts point to the price milestone as a potential entry point for GLD, given its resilience and diversification benefits.
