It wasn’t much, and it came after a rather large outflow on Monday, but, for the first time since February 6th, gold was added to the trust for the SPDR Gold Shares ETF (GLD) on Tuesday.
Per the data from the SPDR website, GLD holdings rose by 2.7 tonnes following an outflow of 13.3 tonnes on Monday, signaling a possible change in sentiment amongst U.S. investors.
As noted here previously in Are Record Outflows From The SPDR Gold ETF Cause For Concern?, that’s all GLD flows really represent – U.S. investor sentiment toward gold.
In recent years, there has been virtually no correlation between the metal’s price and the amount of gold bullion moving into and out of gold ETFs. In fact, it’s reasonable to conclude from the chart above that recent GLD outflows were the result of the metal being held by relatively weak hands who only sold after the price dropped.
It wasn’t until the gold price fell from about $1,700 an ounce to nearly $1,600 an ounce last month that large amounts of the metal began exiting the trust.
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