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Gold ETFs Become Ground Zero As Spot Prices Whipsaw 10% In Hours
['Chandrima Sanyal']
Benzinga - Stock Market Quotes, Business News, Financial News, Trading Ideas, and Stock Research by Professionals
Gold ETFs suddenly became the market's relief valve on Tuesday, as the extreme volatility in spot gold prices drove record trading volumes in the two largest gold ETFs.
This underscores how exchange-traded funds have become the fastest way for investors to react when gold markets are repriced.
Spot Gold's Round TripSpot gold prices surged to around $5,598 before plummeting back to around $5,097 in a matter of hours.
The magnitude of trading volumes underscored the critical infrastructure role of gold ETFs.
Gold ETFs remain among the most liquid instruments in the world, capable of handling large volumes even in times of extreme dislocation.