“Gold-backed Investment Funds See Performance Decline, But Hope Remains for Second Half of 2023”

Books – Islam Saeed

Thursday, May 18, 2023 12:00 AM

performance decline Gold-backed investment funds At the expense of the decline in the prices of the precious metal below the psychological level of $ 2000 an ounce, to witness the second week of losses after gold lost support and expanded the scope of the negative correction, according to Gold Billion.

The SPDR gold investment fund, which is the largest global fund with total assets amounting to $60 billion, witnessed a decline yesterday by 1.3%, and recorded the lowest level in two weeks. While the fund’s performance increased by 10.36% from the beginning of the year until now.

Despite the decline in investment funds in gold this week, they remain hopeful in supporting gold during the second half of the year. Gold, at $824 million, is the second month in a row that ETFs have seen inflows.

The Gold Council indicated that the market remains down by 13 tons due to large outflows from investment funds in Europe in January and February. In general, the demand for gold during the first quarter decreased by 13% on an annual basis, to reach 1081 tons of gold.

The World Gold Council believes that the demand for gold ETFs will remain high during the year 2023, with continued fears of economic recession and the specter of a banking crisis that threatens the markets from time to time, causing investments to move from high-risk stock markets to the safe haven represented by in gold.

But gold needs a catalyst so that it can continue to rise and breach the historical high it recorded at $2080, and selling on stocks can be that catalyst during the coming period.