SYDNEY Dec 10 Exchange-traded commodities
funds manager ETF Securities, which holds about $13 billion in
gold-backed securities, may offer investors a hedged gold
security in Australian dollars to offset the dampening effect
of further U.S. dollar weakness on local bullion prices.
Exchange-traded funds have emerged in recent years,
promoting themselves as simple ways for investors to gain
direct exposure to gold and have largely stayed clear of
While the U.S. dollar gold price XAU= has gained as much
as 53 percent this year, in Australian dollars XAUAUD=R, gold
has risen only 33 percent.
"All the things that pushed gold up this year, including
the weakening U.S. dollar are still there," ETF Securities
Director Nigel Phelan told Reuters.
The security could be offered early next year and would be
aimed at competing with investments in Australian gold mining
stocks, which tend to rise in step with U.S. dollar-denominated
gold rather than local bullion prices, Phelan said.
"If we can provide a vehicle to hedge out that risk, remove
that currency exposure, then you can get the pure gold play,"
(Editing by Clarence Fernandez)