Metals Stocks: Gold prices rise in 2021’s final session but head for worst year since 2015 as ETF interest wanes

General

Gold futures on Friday were headed higher to their highest levels in a month, though 2021 has been the worst year for the precious metal since 2015.

February gold GCG22, +0.60% GC00, +0.60% was trading up $13.60, or 0.8%, to reach $1,827.70 an ounce, following a 0.5% gain for the metal on Thursday.

For the month, gold was on track for a more than 2% gain, as well as a more than 3% rise over the past three months, but the metal is headed for its worst drop since a 10% annual decline in 2015.

Tom McClellan, technical analyst and editor at the The McClellan Market Report, wrote on Thursday that gold has been seen lackluster interest in exchange-traded funds pegged to the precious commodity, even as the asset has seen some traction higher in the final days of 2021, referencing the iShares Gold Trust IAU, +0.70% and the SPDR Gold Shares GLD, +0.72%, two of the most popular ways for investors to gain exposure to the yellow metal.

Both ETFs are down by at least 4.7%.

Tom McClellan

“Right now, gold is moving up slightly, but the total assets of the two funds combined is the lowest since April 2020,” McClellan wrote. Ordinarily, assets in the ETFs tend to rise and fall in sympathy with gold prices.

“The public is not believing in the up move by gold prices, which of course makes that move more legitimate,” he wrote.

Meanwhile, March silver SIH22, +0.72% on Friday was trading 21 cents, or 0.9%, higher at $23.27 an ounce, following a 0.9% rise on Thursday. Silver was on track for its worst yearly decline, down around 12% since 2014.

For the month, silver is up 1.9% and for the quarter the commodity is looking at a 5.5% gain.

For the week, silver is up 1.4% and gold is headed for a 0.8% advance.