An update on GLD – by Don Vialoux

“China’s ETF Move Propels Gold Prices” says the Wall Street Journal. This article reports that Chinese security regulators are allowing Chinese investors to invest in exchange traded gold funds. Gold prices moved to a two week high yesterday with some of the credit given to Chinese buying interest. The SPDR Gold Trust is by far the largest physical gold fund with over $57 billion in assets.

…..look at more of Don’s Seasonal and regular Charts HERE

China’s ETF Move Propels Gold Prices

Hong Kong: China’s securities regulators are allowing mainland Chinese to invest in foreign exchange-traded gold funds for the first time, unleashing the full buying power of the world’s second-biggest economy on funds that already own more gold than most central banks.

Gold prices jumped Tuesday, as interest in gold ETFs could be strong from China, where investors face negative real interest rates on bank deposits and want to hedge against inflation.

Lion Fund Management Co. received permission to invest in exchange-traded gold funds outside the country, making the fund the first of its kind for mainland China, according to a statement posted on the Shenzhen fund provider’s website.

The new rules open ETFs like the $56 billion SPDR Gold Shares, the largest private owner of physical gold, to a potentially enormous new pool of investors.

Lion Fund’s announcement sent gold prices to a two-week high Tuesday, with the December contract gaining $19, or 1.4%, to settle at $1,385 a troy ounce on the Comex division of the New York Mercantile Exchange.

The move to approve foreign ETFs is the latest step in the expansion of the gold market in China, the world’s second-largest gold consumer behind India, and the top producer of the metal.