(Kitco News) – Gold prices have risen amid volatile markets, as have holdings in the world’s largest gold-backed exchange-traded fund. In fact, holdings in SPDR Gold Shares (AMEX: GLD) have risen by nearly 40 tonnes so far in 2016, almost at the same pace as early last year.

GLD holdings have risen roughly 6.08%, mirroring gold’s rise of about 6% since the new year. Based on the latest data on the company’s website, GLD holdings now stand at 681.43 tonnes, a level last seen in November. 

The last time the ETF saw a similar pace of inflows was in January 2015, when holdings rose by 6.96% over the course of the month. However, after a solid start to the year, GLD holdings fell by 9.4% in 2015 as gold prices continued to drop.

Increased investor interest in the yellow metal has been the result of increased market volatility took as worries over China’s economy flooded the newswire, boosting gold as a safe-haven asset. Gold prices managed to hit a three-month high Tuesday and are holding on to this year’s 6% gains, with April Comex gold futures last quoted up $1.90 at $1,129.90 an ounce.

At the same time, equities took a hit with the S&P 500 Index and Nasdaq both down roughly 6.6% and 7.8%, respectively, since January 4.

In spite of gold’s momentum however, longtime trader and editor of Elliotwavetrader.net Avi Gilburt told Kitco News he remains cautious. 

As long as GLD remains below resistance between $109 and $111.60, Gilburt said he is “looking for a drop below 100.”

Since the start of the year, GLD shares have risen by about 4.9%, and settled the day at 108.05 a share. It managed to hit an intraday high of 108.18, a level last seen in early November.

By Sarah Benali of Kitco News; sbenali@kitco.com
Follow me on Twitter @SdBenali