You will be amazed when a successful expert in gold trading reveals how to make a profit in this extremely tough market. That is to refer to the information of the SPDR Gold Trust fund.
Sounds wild, right? But it is a piece of the success formula that few people know. Therefore, in this article, I will introduce the SPDR gold fund as well as how to track its information and activities. This is the key to success if you know how to use it.
Now we will learn about SPDR Gold Trust to make predictions with high accuracy in the following sections.
- Basic knowledge of SPDR fund
- SPDR Fund monitoring guide
- How to analyze trading data of SPDR gold fund
Once there is valuable information from the buying/selling activities of the world’s largest gold fund, you will know why gold falls dramatically or rises suddenly.
What is SPDR Gold Trust fund?
SPDR stands for Standard & Poor’s 500 depository receipt. This is one of many trust funds (ETFs) operated by State Street Global Advisors, a division of State Street Corporation, the world’s second-largest asset management group.
Up to now, SPDR is considered the largest gold exchange-traded fund in the world. Here is some information about the SPDR gold fund you need to know if you want to trade effectively.
The SPDR Gold Trust Fund is listed on the New York Stock Exchange and the NYSE Arca. Now, investors can also trade SPDR funds on other stock exchanges. Among them, there are big names like Tokyo, Singapore, and Hong Kong.
SPDR Fund is sponsored by prestigious organizations such as:
- World Gold Trust Services
- State Street Global Markets
- Trustee: BNY Mellon.
- Supervisor: HSBC bank.
How SPDR Gold Trust fund works
The SPDR Fund is listed on the New York Stock Exchange (NYSE) under the ticker symbol SPY. It has the same trading method as stocks such as short sales, margin purchases, etc., but the investor has to pay a commission to the broker when trading.
SPDR is used by large organizations as a tool for overall market direction. They are also used by individual investors who believe in passive management or index investing.
SPDR provides investors with value in a similar way to a mutual fund. But they trade like regular security.
Why can SPDR fund affect gold prices?
As of the end of 2021, demand for ETFs gold exchange increased strongly, accounting for 8.5% of total gold demand worldwide.
According to Bloomberg, nearly 95 million ounces of gold are held by ETFs. At the time of the Covid pandemic, the total amount of gold owned by these funds amounted to 3,782.9 tons. This is also considered one of the pushes to kick the gold futures price to above 2,000 USD/ounce in 2020.
Not stopping there, according to the World Gold Council report, the total amount of gold bought and sold by ETFs in the first quarter of 2021 also reached a record high of $23 billion.
It is worth mentioning that SPDR also owns a huge amount of gold bullion when it is stored in the London gold vault under HSBC bank.
According to 2018 figures, SPDR holds a total of 69,300 gold bars with a weight of about 27.8 million ounces (953 tons), worth about $37 billion.
Therefore, SPDR has been accused of being one of the “gold manipulators” many times but the fund always denies this information.
Guide to tracking SPDR gold fund
Information about the purchase and sale of large funds such as SPDR makes a very important contribution to the gold trading of small individuals. So I will guide everyone in detail on how to get data using SPDR’s excel format.
Every day the report will be posted by the fund at about 19:00 US time.
Mondays usually do not have new updates. Because last Saturday was updated for Friday (Friday is the trading weekend).
The report of the SPDR Gold Trust fund is available 1 day later. So we can’t know how the fund is trading now.
First, go directly to: http://www.spdrgoldshares.com. Then select the US flag icon and click on “Enter the USA GLD site”.
Next, select “Historical data” and select “Spreadsheet of archived data” to download the file named GLD_US_archive_EN.
This file can be opened easily with Microsoft Excel.
You only need to pay attention to 3 important columns in the file.
1 – Trading date
2 – Price Range
3 – Reverses – the amount of gold (in tons) that SPDR is holding.
We can subtract the current amount of gold from the previous day’s one to find out how many tons of gold SPDR has bought or sold. If SPDR increases gold holdings continuously for days, the gold price is likely to increase. On the contrary, if the total amount of gold SPDR is holding is getting less and less, the probability of the gold price falling is high.
Tracking the SPDR gold fund is like an indicator that helps traders predict gold prices accurately. So it still has many potential risks. You need to manage your capital as safely as possible.
Keep in mind that SPDR Gold Trust fund reporting data is only available after 1 day. Therefore, you cannot know how the fund is trading at the moment. It was not until the next day that they released the data to find out. Because of a certain delay, to objectively assess the situation to predict the upcoming trend, you need to refer to the data of many previous days.
It’s silly to trade on the previous day’s data published by the SPDR fund. Many people who see the total yield of the fund decrease due to selling will place a bearish order with the expectation that the price will decrease. Conversely, when the total output increased because the SPDR gold fund bought in, they quickly placed a bullish order and waited for the world gold price to increase to make a profit. To predict the gold price accurately, in addition to viewing information from the SPDR fund, we also have to pay attention to inflation, interest rates, politics, candlestick charts, etc. Thereby, you can have a judgment with the highest accuracy.
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