Record Gold Prices Drive Inflows into ETFs for Fifth Month in a Row
Record Gold Prices Drive Inflows into ETFs for Fifth Month in a Row
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Global gold exchange-traded funds (ETFs) experienced their fifth consecutive month of inflows in September, driven by increased holdings in North America, according to the World Gold Council (WGC).
Global gold exchange-traded funds (ETFs) experienced their fifth consecutive month of inflows in September, driven by increased holdings in North America, according to the World Gold Council (WGC).
Gold ETFs, which store physical gold for investors, saw significant demand as the price of gold hit a record high of $2,685.42 per ounce on September 26, boosted by the start of U.S. interest rate cuts. After three years of outflows due to high interest rates, the past five months have turned net flows positive, reaching $389 million year-to-date.
Gold ETFs, which store physical gold for investors, saw significant demand as the price of gold hit a record high of $2,685.42 per ounce on September 26, boosted by the start of U.S. interest rate cuts. After three years of outflows due to high interest rates, the past five months have turned net flows positive, reaching $389 million year-to-date.
September's Performance
In September alone, gold ETFs recorded inflows of 18.4 metric tons, equivalent to $1.4 billion, bringing total holdings to 3,200 tons. The rise in gold prices and these inflows pushed total assets under management to a peak of $270.9 billion at the end of the month.
The WGC reported that global gold trading volumes rose by 7% in September, reaching $259 billion per day. Over-the-counter (OTC) market trading volumes also increased by 10%, averaging $176 billion daily.
Speculative Interest
With gold prices up 28% this year and the expectation of further U.S. rate cuts, speculators have increased their net long positions on the Commodity Exchange (COMEX) by 6% from August, reaching 976 tons by the end of September. This is the highest level since February 2020
With gold prices up 28% this year and the expectation of further U.S. rate cuts, speculators have increased their net long positions on the Commodity Exchange (COMEX) by 6% from August, reaching 976 tons by the end of September. This is the highest level since February 2020
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