US Bill Proposes Multi-Vault Storage for Precious Metals ETF Before 6% Gold Slide
US bill would require diversifying gold storage across multiple vaults to reduce concentration risk and bolster security for the precious metals ETF. This week’s gold sell-off erased $3 trillion in market value with a 6% drop—the worst weekly decline since March 2020—before minor corrective rebounds provided entry opportunities.
1. Proposed Vault Diversification Legislation
Lawmakers introduced federal legislation mandating that the ETF’s physical gold reserves be stored in at least three geographically separate vaults, aiming to mitigate concentration risk and enhance asset security. The measure includes requirements for regular audits and contingency protocols to ensure rapid access and liquidity under stress scenarios.
2. Gold Market Volatility and Impact
Gold prices plunged 6% this week, cutting $3 trillion in global market value and marking the steepest weekly drop since March 2020. Contributing factors included a surge in oil prices toward $100 per barrel and renewed expectations of tighter monetary policy, which dampened bullion’s safe-haven appeal.
3. Intraday Rebound Levels for Traders
Following the sharp sell-off, gold experienced a corrective rebound as buyers emerged near key support levels. Active traders identified intraday entry points around $1,860 per ounce, with resistance forming near $1,900, offering potential opportunities for the ETF to capitalize on short-term momentum.