Global physically backed gold exchange-traded funds (ETFs) recorded inflows for the fifth consecutive month in September, driven by increased holdings in North America, according to the World Gold Council (WGC) on Tuesday.
Gold ETFs, which store bullion for investors and contribute significantly to global demand for the metal, saw a boost as gold prices hit a record high of $2,685.42 per ounce on September 26, fueled by the beginning of U.S. interest rate cuts.
Following three years of consistent outflows due to high interest rates, the recent five-month streak of inflows has shifted year-to-date net flows to a positive $389 million, marking a turnaround in investor sentiment.
In September alone, gold ETFs brought in 18.4 metric tons, equivalent to $1.4 billion, pushing total collective holdings to 3,200 tons. This increase, combined with higher gold prices, lifted total assets under management to a month-end high of $270.9 billion.
The WGC also reported a 7% rise in global gold trading volumes in September, with daily volumes reaching $259 billion. In the over-the-counter (OTC) market, average trading volumes rose by 10% to $176 billion.
The strong performance of gold, which has risen 28% this year, coupled with expectations of further U.S. rate cuts, prompted speculators to boost their net long positions on COMEX by 6% in September, reaching 976 tons, the highest level since February 2020.
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