Gold ETFs reached highest level since 2022 as market rout struck

Investor holdings of physically-backed gold exchange-traded funds reached their highest level in three years just as bullion suffered its biggest one-day plunge since 2013.

Total gold ETF holdings climbed to 98.9 million troy ounces as of Tuesday, according to global data compiled by Bloomberg. That’s the highest since Sept. 16, 2022.

Gold plunged as much as 6.3% on Tuesday, the worst rout since 2013, on concerns that the rally had run too far, too fast. While prices of the precious metal extended declines Wednesday, the metal is still up more than 50% this year, fueled in part by retail investors piling into the bullion-backed ETFs — a popular way for them to get exposure to physical gold.

(By Yvonne Yue Li)