Gold ETF inflows continue to rise
(Kitco News) - The world's biggest gold ETF has seen a surge in volume as risk-off sentiment continues to grip financial markets. Overnight there has been more news from the Russian/Ukraine conflict as a nuclear power plant was attacked and this could send more flow into safe havens. Last week, State Street reduced the management fee of its $4.6 billion SPDR Gold MiniShares exchange-traded fund from 0.18% to 0.10%, a new low for the group.
Last week 70.99mln contracts had been traded in the SPDR gold trust ETF (GLD:NYSE) and this week at the moment the volume stands at 72.55mln. Looking at the weekly chart below, the price has just recently broken a strong resistance zone at the orange zone but there is another resistance level at 183 (marked in purple) that the price has stalled at once already.
Looking ahead, the U.S. open will be very important as traders and investors digest the escalation in the conflict overnight. If the purple level is broken the bull could target the all-time high at 194.45. The price is way above the volume point of control (VPOC) and it has been pushed there off the back of some decent volume. This is a good sign that the market is backing this move and the highs could be tested.