Gold ETFs saw their fifth consecutive month of inflows in September, according to the World Gold Council (WGC)
Global physically backed gold exchange-traded funds (ETFs) experienced their fifth consecutive month of inflows in September, driven by increased holdings in North America, as reported by the World Gold Council (WGC) on Tuesday.
These gold ETFs hold bullion for investors and represent a substantial portion of the investment demand for gold, which reached a record high of $2,685.42 an ounce on September 26, following the announcement of U.S. interest rate cuts.
After three years of outflows amid rising interest rates, the last five months have shifted year-to-date net flows to a positive $389 million in dollar terms.
In September, gold ETFs recorded inflows of 18.4 metric tons, equating to $1.4 billion, raising total holdings to 3,200 tons, according to the WGC’s research note.
The combination of rising gold prices and recent inflows boosted total assets under management to a record high of $270.9 billion by the end of September.
The WGC, which represents global gold miners, also noted that worldwide gold trading volumes increased by 7% month-over-month to $259 billion daily in September, while average trading volumes in the over-the-counter (OTC) market rose by 10% to $176 billion.
With gold prices up 28% this year and the potential for further U.S. rate cuts, speculators raised their total net long position on COMEX by 6% from August, reaching 976 tons by the end of September, the highest level since February 2020.
