Early this week, SPDR sold over 5 tons of gold. The fund then reversed its transactions, making net purchases totaling 13,4 tons during the remaining sessions.
The fund currently holds over 1,060 tons of gold, an increase of 8 tons compared to the end of last week, reaching a one-month high. The total asset value as of the end of the week stood at 166 billion USD.
SPDR's accumulation occurred as the Middle East conflict showed signs of de-escalation, evidenced by Iran temporarily reopening the Strait of Hormuz during the Israel - Lebanon ceasefire, coupled with a weakening US dollar.
SPDR is the first gold exchange-traded fund (ETF) traded in the US and holds the largest asset size globally. Investors view the fund's buying and selling trends as a short-term indicator of the global precious metals market's upward or downward momentum.
SPDR's transactions typically align with geopolitical developments and interest rate fluctuations. When the Middle East conflict initially erupted, the fund continuously made net purchases, increasing its reserves to 1,100 tons and pushing its asset value to 188 billion USD – nearing a record high in its 22 years of operation. Gold then served as a safe haven asset.
However, the precious metal increasingly faced pressure as the conflict drove up energy prices, leading to accelerated inflation in many regions. This compelled central banks to hesitate in reducing interest rates. Consequently, gold prices were at a disadvantage due to not offering fixed interest, leading to a gradual decline of approximately 10% since the conflict began.
The de-escalation of the conflict helped gold prices gradually tick up. Each ounce of gold fluctuated around 4,670 USD early this week and closed above 4,830 USD, an increase of approximately 160 USD. In the final session of the week alone, global prices sometimes rose by 70 USD.
Domestically, SJC gold bars fluctuated between 168,5 - 172 million VND per tael, increasing by one million VND on the last day of the week. Plain gold rings also saw a similar rise, reaching 168 - 171,5 million VND per tael.
Converted at Vietcombank's exchange rate, global gold is equivalent to 154 million VND per tael. Thus, each tael of domestic gold has a premium of approximately 18 million VND over global prices, narrowing from the record gap of 30 million VND at the end of last month.
Phuong Dong
