Title: Global Gold ETFs See Fifth Consecutive Month of Inflows, Reaching Record Highs in September - World Gold Council Report
As the world's top investment manager and financial market journalist, I am thrilled to report that global physically backed gold exchange-traded funds (ETFs) have experienced their fifth straight month of inflows in September. According to the latest report from the World Gold Council (WGC), North America-listed funds have been adding to their holdings, contributing to this positive trend.
Gold ETFs, which store bullion for investors, have been a significant driver of investment demand for the precious metal. The price of gold reached a record high of $2,685.42 an ounce on Sept. 26, fueled by the beginning of U.S. interest rate cuts.
After facing three years of outflows due to high interest rates, the past five months have seen a turnaround, with year-to-date net flows in dollar terms turning positive to $389 million.
In September alone, gold ETFs saw inflows of 18.4 metric tons, or $1.4 billion, bringing collective holdings to 3,200 tons. The stronger gold price and recent inflows have pushed total assets under management to a month-end peak of $270.9 billion in September.
The WGC also reported that worldwide gold trading volumes increased by 7% month on month to $259 billion a day in September, with average trading volumes in the over-the-counter (OTC) market rising by 10% to $176 billion.
With the gold price up by 28% this year and the possibility of future U.S. rate cuts, speculators have increased their total net long position on COMEX by 6% from August to 976 tons by the end of September, marking the highest level since February 2020.
In conclusion, the steady inflows into global gold ETFs, along with the rising gold price and trading volumes, indicate a strong appetite for the precious metal among investors. As an investor, it may be worth considering including gold ETFs in your portfolio to diversify and potentially benefit from the positive trend in the gold market.