Gold for delivery in February, the most active contract on the Comex market, briefly scaled $1,200 an ounce on Friday, but ended the day just below that psychologically important level.
Gold is up more than $80 an ounce since hitting post-US presidential election lows mid-December, but remains down some $130 from an initial but brief surge on election night as results showed a likely victory for Donald Trump.
Each day since Trump’s victory investors in top physical gold-backed exchange traded fund – SPDR Gold Shares (NYSEARCA: GLD) – have pulled money out of the fund.
The losing streak was the longest on record – 43 trading days without net inflows. After dumping 138.8 tonnes since November 9, on Friday gold bulls were finally convinced to jump back in, picking up just under 3 tonnes.
GLD dwarfs other physically-backed gold ETFs holding more than 45% of the global total. GLD vaults now hold 808 tonnes or 26 million ounces; worth just under $31 billion.
That’s down more than $12 billion from the 2016 peak hit early July as the gold price retreats and investors liquidate their holdings.
After a few dismal years, GLD’s rise in assets under management in 2016 up to election day, surpassed the banner years of 2009 and 2010 when investors caught in the global financial crisis and spooked by quantitative easing piled into GLD.
On August 22, 2011 when gold was hitting record highs above $1,900 an ounce GLD became the largest ETF in the world briefly surpassing the venerable SPDR S&P 500 trust at a net asset value of $77.5 billion.
Gold holdings in the trust would peak more than a year later in December 2012 at 1,353 tonnes or 43.5 million ounces.