SPDR Gold Shares witnessed $1.9 billion of inflows on Feb. 21, the largest one-day inflow in the exchange-traded fund’s 20-year history. That beat the prior inflow record of $1.6 billion on Jan. 21, 2022, said a spokesperson for the fund's marketing agent State Street Global Advisors.
For the week ended Feb. 21, the fund, which trades under the ticker symbol GLD, attracted an all-time record inflow of $3.9 billion, surpassing the prior record of $3.5 billion for the week ended Feb. 13, 2009, amidst the depths of the Great Financial Crisis.
As of the close of Feb. 21, GLD reached an all-time high of $87.24 billion in assets under management (although that figure has slipped to $85.53 billion as of Feb. 24), making it the largest physically backed gold ETF in the world.
Year-to-date through Feb. 21, GLD returned 12.4%, closely matching the price of gold’s 12.5% performance over that period.
The GLD ETF exclusively owns physical gold bullion.
George Milling-Stanley, chief gold strategist at State Street Global Advisors, said “one of the key drivers behind the record dollar inflows into GLD last Friday and throughout last week was a growing demand for risk-off assets amid increasing uncertainty about the U.S. economic outlook.”
Concerns have intensified over the potential inflationary impact of the new Trump administration’s proposed policies on immigration and tariffs, he said, particularly following a hotter-than-expected January CPI (3%) and weaker-than-expected January retail sales (just below 1%).
“Additionally, the U.S. dollar Index appears to have peaked in January at 110, well above its long-term average of 89, and has since been trending downward, forming a pattern of lower highs and lower lows,” Milling-Stanley added.
The U.S. dollar Index and gold prices typically have a negative correlation, he explained.
As of Feb. 24, the price of gold traded at about $2,965 per ounce. In December, the State Street Global’s gold strategy team saw a 30% bullish-case probability that gold will range between $2,900 and $3,100 per ounce in 2025.
“Investor interest in GLD remains strong, with purchases evenly distributed between institutional and individual investors,” Milling-Stanley noted.
