XGD.TO is trading lower after a -3.13% drop to CA$52.99 as easing geopolitical tensions in the Strait of Hormuz reduce safe-haven demand for gold-related assets.
- Reports of a potential de-escalation and reopening framework in the Strait of Hormuz have significantly lowered the geopolitical risk premia that typically support gold prices.
- Investors are rotating capital out of defensive assets and into tech and consumer sectors following recent strength in the gold market.
- The ETF faces continued pressure as the broader market reacts to the cooling of regional tensions and a shift in sector focus.