Global X Physical Gold Treads Water Amid Cross-Currents

Global X Physical Gold (ASX:GOLD) has shown tentative signs of stabilizing after a sharp pullback over the past month. The US dollar gold price was modestly higher over the past week, but still meaningfully lower than a month ago and slightly down for the calendar year to date.

The fund aims to mirror the Australian dollar gold price, less its annual management fee. Gold remains well above year-ago levels, while a firmer US dollar and recent US rate rise add cross-currents.

Central bank demand has been a significant support for gold in recent years, as monetary authorities diversify their reserves. Net purchases by central banks can affect the price, and any sign of slowing or accelerating official demand tends to be closely watched.