(Reuters) -Receding fears of a U.S. slowdown, surging bond yields and the robust performance of equities have gradually eroded the appeal of exchange-traded funds (ETF) backed by traditional safe-haven gold this year, despite sticky inflation.
The biggest ETF, SPDR Gold Trust, saw holdings dwindle to pre-pandemic levels.
[GOL/ETF]Investors typically buy gold during times of financial and economic uncertainty and rising inflation.
[GOL/]“Gold has fallen into disfavour as a hedge against economic uncertainty for many institutional investors,” said Ross Norman, chief executive of Metals Daily.
Equities have outperformed gold despite higher interest rates, while rival safe-haven Treasury bonds have attracted investors away from gold, which doesn’t earn any interest or dividends.
Persons:
Ilya Naymushin, ”, Ross Norman, Carsten Menke, Julius Baer, Gold, Philip Newman, Newman, hasn’t
Organizations:
Reuters, REUTERS, World Gold Council, Investors, U.S, Metals Daily, U.S . Federal, Treasury, Metals
Locations:
U.S, Siberian, Krasnoyarsk, Russia, disfavour, “