Gold price weakness takes $1.5bn out of largest ETF
The recent weakness in the gold price trend was accompanied by significant outflows of funds from the largest gold ETF, according to Gold reporter.
Investors withdrew $1.5 billion from the SPDR Gold Shares (GLD) in one week, according to data from the operator.
As of February 24, the fund’s gold holdings were down 2.3% from the previous week. This represents a withdrawal or sale of 26.53 tonnes of the metal.
Year-to-date, GLD gold holdings are down 63.5 tonnes.
Officially, the fund must physically deposit 1/10 ounce of gold for each unit certificate. The bars are stored in the vaults of major banks in London.
If investors withdraw money from the gold ETF, metal enters the market accordingly.
In contrast, outflows from the largest silver fund were more moderate. The silver price has also not suffered as much as gold recently.
The inventory of the iShares Silver Trust (SLV) decreased by 1.1%, or 222.46 tonnes to 19,272.14 tonnes, compared to the previous week.
Each fund unit of the SLV is physically covered with 1 ounce of silver, according to the securities prospectus.
