State Street’s SPDR gold ETF suite has crossed $101 billion in collective assets under management, as investors continue pouring money into the precious metal amid rising global tensions and economic uncertainty.
With gold recently setting new all-time highs and currently trading at $3,015 per ounce, the $5.4 billion in year-to-date inflows to State Street’s gold ETFs reflects growing investor confidence in the precious metal as a portfolio hedge against inflation, geopolitical risks and anticipated Federal Reserve policy shifts.
According to data from etf.com, the combined assets of the SPDR Gold Trust (GLD) and the SPDR Gold MiniShares Trust (GLDM) now stand at $101 billion. The funds have maintained this level after crossing the threshold this week.
Current data show GLD managing $88.6 billion in assets, while GLDM holds $12.4 billion, according to etf.com figures as of March 21.
Both funds have shown strong recent momentum, with GLD attracting $471.8 million and GLDM pulling in $405 million in the last five days alone.
“Weaker US economic data and heightened domestic and foreign policy uncertainty have prompted a strong bid for gold this year,” explained Aakash Doshi, global head of gold strategy at State Street Global Advisors.
Doshi noted that investors are seeking safe-haven assets as post-election economic optimism faces challenges.
“Concerns about a U.S. growth contraction are emanating amid stickier inflation and higher asset market volatility. These three drivers have likely prompted the March leg of the gold market rally to $3000 per ounce-plus,” he added.
These concerns align with recent Federal Reserve projections, as the central bank maintains its cautious stance on interest rates amid mixed economic signals.
The surge in gold ETF demand reverses the market’s previous redemption cycle. In a January report, Doshi predicted that a reversal in ETF outflows could push gold to $3,100 per ounce in 2025, a target that now seems increasingly attainable.
The two SPDR gold products are attracting different investor profiles, said Doshi. “With the February and March uptick in GLD options volumes and [volatility skews] versus January, we are primarily seeing institutional inflows into GLD—particularly in February but also in March,” he explained.
Meanwhile, “GLDM looks to be a combination of retail buying, portfolio rebalancing activity and some institutional flows,” Doshi adds, highlighting the complementary roles these products play in State Street’s gold ETF suite.
