Metal Power: Even with Volatility This Week, Gold Remains a Hot Commodity

Gold ETFs are moving toward record highs after strong November inflows.

SPDR Gold Shares (NYSEARCA:GLD) led all ETFs in November thanks to its $3.1 billion in net cash inflows, according to National Stock Exchange data, while December is proving to be another strong month with the $71 billion gold ETF market recording its greatest monthly flow this year, according to Financial Times.

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And on Nov. 30, holdings in exchange-traded gold products jumped to 2,356 record-breaking tons, Bloomberg reported.

For the year, gold ETFs have risen more than 20%. Both gold and other precious metals may see some volatility this week in response to Friday’s EU summit.

Commodity exchange-traded products are  also seeing November success with gold products. It is the category with the most global assets holding a “strong favoring” of gold by investors, according to ETF manager BlackRock (NYSE:BLK).

Kevin Feldman, Managing Director at BlackRock said, “Price volatility in global commodity markets has not dampened the market’s enthusiasm for gold, particularly among both central banks and ETP investors. Ongoing speculation about significant future global monetary easing has been favorable for the commodity, as investors recognize that central banks have the capability to expand the global money supply rapidly, and gold provides a potential hedge for this scenario.”

These Gold ETPs have collected $12.1 billion to-date, vs every other commodity category at $1.7 billion.

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