SPDR Gold Shares (GLD) is one of the most prominent exchange-traded funds (ETFs) providing investors with exposure to gold, which is seen as a store of value and hedge against economic uncertainty.
It is backed by physical gold, offering investors a convenient way to gain exposure to the gold market without owning the metal directly or trading in commodities.
Gold has historically served as a safe haven during periods of market volatility and inflation, making GLD a popular choice for diversifying portfolios. It appeals to investors looking for stability in uncertain times while providing an alternative to traditional assets like stocks and bonds.
Launched in November 2004, GLD is designed to track the performance of the price of gold bullion, less the trust’s expenses.
As of end November 2024, SPDR Gold Shares’ total assets under management were $74.57 billion. Its gross expense ratio is 0.4%.
Gold Forecast
Gold’s outlook depends on several macroeconomic factors, including inflation trends, interest rate policies, and geopolitical events:
Bull Argument: Analysts at Goldman Sachs forecast continued demand for gold as central banks, particularly in emerging markets, have maintained high levels of gold purchases and inflation expectations remain elevated. “Central bank purchases have been a powerful force, resetting the level of gold prices higher since 2022,” stated Goldman Sachs.
By the end of 2025, the investment bank sees the yellow metal rising to $3,000, with 100 tonnes of physical demand expected to lift gold prices by at least 2.4%. Meanwhile, FlowCommunity's Ruben Ferreira recently said that incoming US President Donald Trump's proposed tariffs may intensify market uncertainty and drive increased demand for safe-haven assets such as gold to protect against market risks and economic instability,
Bear Argument: While many analysts are bullish on gold, it is important to also consider the potential factors that could cause a bearish move in the precious metal. For example, if inflation remains elevated or begins to creep higher once again, investors may believe that rates will remain higher, which could cause gold to slide.
Additionally, if geopolitical concerns ease, that could also impact gold, while a strong equity market performance could divert investor interest away from gold.
Our View: SPDR Gold Shares is definitely a reliable and efficient way to invest in gold, offering liquidity and accessibility for both individual and institutional investors. While short-term movements in gold prices can be unpredictable, GLD remains an excellent portfolio diversifier and hedge against inflation and economic instability.
SPDR Gold Shares Performance & Price Chart
GLD’s performance is closely tied to movements in the spot price of gold, which is influenced by factors such as global economic conditions, inflation expectations, and central bank policies.
| Year | Performance |
|---|---|
| 2024 (YTD) | +28.47% |
| 2023 | +12.69% |
| 2022 | -0.77% |
| 2021 | -4.15% |
| 2020 | +24.81% |
GLD Chart
Gold Futures
Who Should Buy the SPDR Gold?
GLD is a compelling choice for investors seeking a hedge against inflation as the metal itself has traditionally held its value during periods of high inflation, making GLD a suitable option for preserving purchasing power.
In addition, those looking for portfolio diversification may also find it attractive as gold’s low correlation with other asset classes makes GLD a useful tool for reducing overall portfolio risk.
Furthermore, if you believe there could be further geopolitical or economic uncertainty, GLD may also be a potential investment option as gold often acts as a safe-haven asset.
Meanwhile, GLD may be one to consider for short-term traders looking to capitalise on price fluctuations as GLD’s liquidity makes it an attractive choice for traders seeking exposure to gold’s price movements.
However, GLD may not be suitable for investors prioritising growth-oriented investments as gold typically lacks the growth potential of equities and other risk-on asset classes.
In addition, those seeking a lower volatility asset may also want to look elsewhere as gold prices can fluctuate significantly, influenced by macroeconomic and geopolitical factors.
