Data &
Technology
Research
Reports
Report Solutions
Reports Library
Actionable
Strategies
Free
Resources
Simple Backtest Calculator
Simple Seasonality Calculator
The Kelly Criterion Calculator
Sentiment Geo Map
Public Research Reports
Free Webinar
Pricing
Company
About
Meet Our Team
In the News
Testimonials
Client Success Stories
Contact
Log inLoginSign up
< BACK TO ALL REPORTS

Gold's surge in assets

Jason Goepfert
2020-06-23
There has been a rush of assets into gold ETFs over time frames stretching back as long as 3 months. This has been a modest negative for gold prices over the medium-term, but was inconsistent, especially in the mid-2000s.

Despite some signs of shorter-term speculative activity in stocks, there still seems to be some apprehension among some, as safe-haven assets like gold continue to hold up.

Assets are pouring in. Bloomberg noted that on Friday, gold exchange-traded funds added nearly 1 million troy ounces to their holdings, nearly 1% of their asset level.

Assets in GLD have surged, and other funds have added even more.

While this seems like it's a sign of too much confidence in the yellow metal, it hasn't been a great predictor. Below, we can see every time that total ETF holdings of gold surged over time frames including 1 day, 1 week, 1 month, and 3 months.

When it happened in 2016, gold struggled on various time frames, and it ended up leading to years of mediocre returns. But it also triggered a handful of times during the large bull run in the mid-2000s, with no clear detriment. Over the next three months, gold tended to fall, but there were two big exceptions to that, in November 2005 and September 2007.

The surge in assets is a mild warning sign, but not consistent enough to believe it will necessarily halt the rally.

Sorry, you don't have access to this report

Upgrade your subscription plan to get access
Go to Dasboard
DATA &
TECHnologies
IndicatorEdge
‍
BackTestEdge
‍
Other Tools
‍
DataEdge API
RESEARCH
reports
Research Solution
‍
Reports Library
‍
actionable
Strategies
Trading Strategies
‍
Smart Stock Scanner
‍
FREE
RESOUrCES
Simple Backtest
Calculator
Simple Seasonality
Calculator
The Kelly Criterion
Calculator
Sentiment Geo Map
‍
Public Research Reports
‍
Free Webinar
COMPANY
‍
About
‍
Meet our Team
‍
In the News
‍
Testimonials
‍
Client Success Stories
Pricing
Bundle pricing
‍
Announcements
‍
FAQ
© 2024 Sundial Capital Research Inc. All rights reserved.
Setsail Marketing
TermsPrivacyAffiliate Program
Risk Disclosure: Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.

Hypothetical Performance Disclosure: Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.

Testimonial Disclosure: Testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success.