CI Investments Inc sharply decreased its holdings in the world's biggest gold-backed exchange-traded fund during the first quarter of 2018, a US Securities and Exchange Commission 13F filing showed on Monday. The investment arm of Toronto-based CI Financial Corp decreased its holdings in SPDR Gold Trust to nearly 2.1 million shares worth $258.2 million during the first quarter of 2018 from 3.9 million shares worth $482.1 million in the fourth quarter of 2017.
During that period, spot gold prices rose about 1.7 percent, yet stayed within a tight trading range. Gold drew support from safe-haven buying related to geopolitical concerns including US-China trade tensions and as the United States and European Union moved to expel Russian diplomats over accusations that the Kremlin played a role in the poisoning of a former Russian spy on British soil.
Pressure on gold came from a stronger US dollar, talk of rising interest rates and strengthening global equities. Gold is sensitive to rising rates because it does not bear interest. Since it is priced in the US dollar, a stronger greenback makes the precious metal more expensive for holders of other currencies.
CI Investments kept its stake in Barrick Gold Corp the same at 312,762 shares, but those dropped in value to $3.89 million at the end the first quarter from $4.53 million in the last quarter of 2017. It decreased its call options to 145,557 shares worth $5.37 million. This compares with 183,396 shares worth $6.78 million in the fourth quarter. CI Investments decreased its holdings in Randgold Resources Ltd to 132,200 shares at a value of $11 million during the first quarter of 2018, down from the fourth quarter of last year's 132,810 shares valued at $13.13 million.