In turn, gold ETF funds recorded a net inflow of funds in October for the sixth month in a row, notes Carsten Fritsch, commodity analyst at Commerzbank.
Gold ETFs record net inflows for the sixth month in a row
“According to the World Gold Council, it was 43 tons. This means that almost 164 tons of gold have flowed into ETF funds since May. For the first time this year, gold ETF holdings were also higher than at the end of 2023, meaning net outflows in the first four months of the year were more than reversed.”
“October saw net inflows in North America (30 tonnes) and Asia (23 tonnes), but net outflows in Europe (11 tonnes). According to the WGC, the influx of immigrants to North America was driven in particular by uncertainty in the run-up to the US elections. “The inflow into Asia was mainly in China, where the WGC saw record inflows during the month.”
“This is also notable because traditional gold demand for jewelry, bars and coins in China has been weak recently. However, time will tell whether the shift in gold demand towards ETFs will continue. ETF outflows in Europe were widespread across all major markets. WGC attributes this to rising yields and weakness in local currencies.”
