The bull run in gold backed Exchange Traded Funds (ETFs) continued as tensions over Crimea referendum mounted. The rise in safe-haven demand was seen driving investors and speculators flock into gold ETFs which are poised to deliver its first quarterly gain in more than a year.
The SPDR Gold Trust (GLD)--the world’s largest gold-backed ETF has gained 1.7% since the Russia-Ukraine stand-off commenced early this month. The ETF has appreciated by 11.2% year-to-date. It must be noted that investors had dumped the gold ETFs during last year following the historic fall in gold prices mid-April. The gold ETFs liquidated nearly 880 tonnes of bullion last year.
Bullion prices also have been gaining strength, having broken $ 1,350 levels. Gold (COMEX:GCJ14) hit fresh six-month high today, heading for its biggest weekly gains in more than a month. Incidentally, the yellow metal has appreciated by 14% so far this year. Analysts at HSBC believe that the heightened tensions in Ukraine and the economic slowdown in China are likely factors that may potentially raise the investment demand of gold.
The SPDR Gold Trust saw addition of 2.10 tonnes yesterday, thereby lifting the current holdings to 813.30 tonnes.