Investors ditch gold ETF as interest rates dim appeal

Singapore (June 2)  Investors left the second-largest exchange-traded fund (ETF) tracking gold as climbing interest rates dimmed the precious metal’s appeal as a safe haven.

The US$12 billion iShares Gold Trust had about US$170 million in outflows on Wednesday, the most since March last year.

The ETF has taken in almost three times as much cash this year as its larger competitor, the US$36 billion SPDR Gold Shares fund.

Gold has struggled to hold onto its gains this year as the US dollar strengthens and borrowing costs in the US rise, hurting the appeal of the non-interest bearing metal.

Spot gold on Friday fell 0.4 percent to US$1,293.60 an ounce, down 0.8 percent from last week’s US$1.304.48.

Teipei-Times