2 ASX gold ETFs cracking new record highs today

Gold, and gold ETFs, are standing out as this week's big ASX winner.

| More on:
a woman in a business suit holds a large solid gold bar in both hands with a superimposed image of a gagged gold line tracking upwards and featuring a swooping curved arrow pointing upwards.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Well, gold seems to be the only asset climbing in value this week – fulfilling its traditional role as a defensive asset, one could argue. On Monday, we covered how a few ASX gold exchange-traded funds (ETFs) were benefitting from higher prices and cracked new record highs. Well, the highs have continued to flow today. 

Let's take a look at the gold price itself for a moment though. On Monday, gold was fetching around US$1,876 per ounce, up from US$1,867 the previous week. This jump is what spurred the new highs we saw on Monday.

Today, the precious metal is asking US$1,923 per ounce – another 2.5% above where it was on Monday.

So it's no secret that these sharp rises in gold are being fuelled by the turmoil we are seeing in the global financial system right now. On Monday, we have the news that US bank SVB Financial Group had gone belly up. Today, everyone is talking about Credit Suisse's implosion.

Failing banks is one of the most disruptive events for a financial system to deal with. So it's perhaps no surprise to see investors panicking and heading into the 'safe haven' of gold.

But let's see where the rubber is hitting the road.

These ASX gold ETFs are at new record highs

So the ASX has seen not one, but two ASX gold ETFs hit new record highs today.

The first is the Global X Physical Gold ETF (ASX: GOLD). On Monday, we covered how this ETF had hit a new high of $26.49. Well today, that same ETF has climbed even higher and hit a new record of $26.94 per unit this morning.

It's not the only ETF at new heights either. The Perth Mint Gold (ASX: PMGOLD) ETF has also seen a new high today. Perth Mint Gold units hit their new record of $29.02 just after market open this morning as well:

Both of these ETFs allow investors to indirectly buy gold by holding physical gold bars on their behalf. Thus, the value of this gold and the ETF is directly affected by higher gold prices. So it's no surprise to see these two gold ETFs at new high watermarks this Thursday. 

SVB Financial provides credit and banking services to The Motley Fool. Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended SVB Financial. The Motley Fool Australia has recommended SVB Financial. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Gold

An older female ASX investor holds a gangster-style fist pump pose showing off gold rings with dollar signs on them.
Gold

Why ASX 200 gold stocks dazzled shareholders in March

March proved a profitable month for investors in ASX 200 gold stocks.

Read more »

a man in a green and gold Australian athletic kit roars ecstatically with a wide open mouth while his hands are clenched and raised as a shower of gold confetti falls in the sky around him.
Gold

Why are ASX 200 gold stocks surging again on Thursday?

ASX 200 gold stocks are racing ahead of the benchmark today.

Read more »

rising gold share price represented by a green arrow on piles of gold block
Dividend Investing

1 Australian dividend stock quietly crushing the ASX today

The ASX 200 dividend stock has soared 38% since early October.

Read more »

a man wearing a gold shirt smiles widely as he is engulfed in a shower of gold confetti falling from the sky. representing a new gold discovery by ASX mining share OzAurum Resources
Gold

This ASX 200 gold stock could rise 25%+

Analysts expect golden returns from this mining stock.

Read more »

Woman holding gold bar and cheering.
Gold

Buy this ASX 200 gold share with 30% upside before it's too late

This stock could generate golden returns for investors according to Bell Potter.

Read more »

Woman holding gold bar and cheering.
Gold

Is it too late to join the booming ASX gold rush?

The gold price notched new record highs, adding fuel to the ASX gold rush.

Read more »

Calculator and gold bars on Australian dollars, symbolising dividends.
Gold

The gold price just reached its highest level ever: Which miners are buys?

Here's why the precious metal just hit a record high.

Read more »

A woman in a business suit sits at her desk with gold bars in each hand while she kisses one bar with her eyes closed. Her desk has another three gold bars stacked in front of her. symbolising the rising Northern Star share price
Gold

ASX 200 gold shares are booming on Monday. Here's why they could keep shining bright

Today’s strong rally among ASX 200 gold stocks may be just the beginning, according to this expert forecast.

Read more »