Biggest Gold ETF Records Highest Dollar Volume Since Greek Debt Crisis — Bull Run To Continue?

The SPDR Gold Shares (GLD), the largest exchange-traded fund (ETF) that invests directly in physical gold, logged the highest one-day dollar volume on Thursday, the most since the Greek debt crisis in 2013.

According to Bloomberg ETF analyst Eric Balchunas, the ETF logged $12.5 billion in dollar volume, even higher than some of the so-called "Magnificent Seven" group of tech companies. Retail sentiment on Stocktwits about the GLD ETF was in the ‘extremely bullish’ territory at the time of writing.

On Thursday, Gold prices pulled back below $4,000 per ounce after a record surge, as Israel and Hamas agreed to a ceasefire, which eased some of the geopolitical concerns. Yet the bullion remains on course for the eighth straight week of gains, banking on political uncertainties as the U.S. government shutdown entered its second week.

According to ING Commodities data, investors have been adding gold ETFs at a rapid pace. Total gold held by ETFs rose 17% this year, the highest level since September 2022. Investor holdings in gold ETFs generally rise when gold prices rise, and vice versa.

The research firm noted that there is still room for further additions, as the current total remains shy of the 2020 peak, and additional inflows could push gold even higher.

According to a Reuters News report, Alex Ebkarian, COO at Allegiance Gold, said that gold is in a secular bull market for the next five years. "That ($4,000) psychological threshold triggered profit-taking among speculators and short-term traders, but long-term investors should see it as confirmation that confidence in paper money is eroding," he noted.

Gold prices have surged over 50% this year, with their recent surge aided by the debasement trade, where investors flock to safe-haven investments due to political instability.

On Thursday, private surveys showed that the U.S. weekly jobless claims rose last week, likely due to the government shutdown. The official jobs report has been delayed.

Also See: Trilogy Metals Stock Is Headed For Best Week Ever: Will Analyst Downgrade Pour Cold Water On Gains?

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