As gold prices plummet, gold ETF holdings reach a new high since 2022

As gold prices experienced their largest single-day drop since 2013, the holdings of physical gold ETFs reached a three-year high. Global data compiled by Bloomberg shows that as of Tuesday, the total holdings of gold ETFs climbed to 98.9 million troy ounces, the highest level since September 16, 2022. On Tuesday, gold prices plummeted by as much as 6.3%, marking the most severe decline since 2013, as the market worried that the previous surge was too rapid and aggressive. Although precious metal prices continued to decline on Wednesday, gold prices have still risen by over 50% this year, partly due to retail investors flocking to gold ETFs — a popular way for investors to gain exposure to physical gold