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Bailey McCann, Opalesque New York:

Today, the World Gold Council and State Street Global Advisors announced the launch of the SPDR Long Dollar Gold Trust (GLDW). The product is the first U.S. listed gold-backed ETF that also hedges against a strong U.S. dollar.

The ETF which trades under the ticker GLDW is the second gold-backed product launch for the World Gold Council. In November 2004, the World Gold Council through a US subsidiary and State Street Global Advisors launched SPDR Gold Shares (GLD), the first US traded gold ETF and the first US-listed ETF backed by a physical asset. GLDW like GLD trades in physically held gold, not the gold industry like miners. Alongside the gold, GLDW goes long the US dollar against a basket of foreign currencies. The fund is settled each day, however, in physical gold.

The product is targeted at hedge funds and institutional investors.

"We have been in a strong dollar environment for a number of years," Greg Collett, Director of Investment Products at the World Gold Council, said in an interview with Opalesque. "GLDW gives investors an option if they want gold exposure but are also conscious of currency issues."

In its case for the fund, the World Gold Council notes that while gold has declined in value recently, when the effect of a strengthening USD is removed, gold priced in non-US currencies, such as the Euro, increased. The basket of currencies that act as a hedge within the product include primarily those from ......................

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