(Provides remark, updates particulars)
June four (Reuters) – Holdings of SPDR Gold Belief, the world’s largest gold-backed exchange-traded fund, rose 2.2% on Monday, its greatest one-day proportion acquire since July 2016, as buyers spooked by international slowdown fears sought protected havens.
SPDR Gold’s holdings rose by greater than 16 tonnes, or over half 1,000,000 ounces, to 759.65 tonnes from 743.21 tonnes on Friday.
Nevertheless, its holdings are nonetheless down greater than three% to this point this yr because of lackluster investor curiosity after bullion costs slipped beneath the important thing $1,300 stage in early March, down from February’s 10-month peak of $1,346.73.
Spot gold has jumped greater than $50 an oz. up to now three periods as buyers offered riskier property and sought refuge in bullion on issues that heightened U.S.-Chinese language commerce tensions and Washington’s menace of tariffs on Mexico would harm the worldwide economic system.
“The correlation between fairness markets and gold costs performed by way of ETF holders, (with) actually buyers switching out of shares indexes into gold ETFs,” ANZ analyst Daniel Hynes stated.
“This has a fairly robust correlation. So, if we see a selloff in fairness markets proceed, then we must always see ETF holdings proceed to develop.”
Gold was buying and selling at $1,323 an oz. in early Asian commerce on Tuesday, not far off a three-month peak hit within the earlier session.
Reporting by Nallur Sethuraman and Brijesh Patel in Bengaluru;
enhancing by Richard Pullin
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