Singapore has listed its first gold exchange-traded fund (ETF)

Singapore Gets Its First Physical Gold ETF as Golden Battle Heats Up

Singapore just marked a new milestone in its gold market. On March 26th, the LionGlobal Physical Gold ETF made its debut on the Singapore Exchange. It's the city-state's first ETF tracking locally stored gold—with purity of at least 99.5%.

The fund actually opened to retail and institutional investors on an over-the-counter platform about four months ago. Now it's going public on the main exchange.

This move mirrors what rival Hong Kong has been up to. Hong Kong recently inked a gold clearing deal with the Shanghai Gold Exchange and plans to build a vault with capacity over 2,000 tons within three years.

But here's the twist. Just as these two financial hubs expand their gold offerings, gold prices have been under pressure. US gold futures have taken a tumble—from over $5,400 per ounce on March 2nd down to around $4,100.

What's behind the drop? Analysts point to Iran's grip on the Strait of Hormuz, which is pushing up energy prices. That's fueling inflation expectations and making central banks hold off on easing monetary policy. The market logic has shifted from "risk-off" to focusing on inflation, interest rates, and liquidity. And that, in turn, is weighing heavily on gold.