Gold ETFs See Fifth Consecutive Month of Inflows in September, According to WGC – Reuters

LONDON (Reuters) – Global physical gold exchange-traded funds (ETFs) saw their fifth consecutive month of inflows in September, with funds listed in North America contributing to this growth, according to the World Gold Council (WGC).

Gold ETFs are designed to store bullion for investors and represent a significant portion of the investment demand for gold, which recently peaked at a record price of $2,685.42 per ounce on September 26, driven by expectations of U.S. interest rate reductions.

After experiencing three years of outflows due to elevated interest rates, the trend has reversed over the past five months, leading to a year-to-date net inflow of $389 million.

In September, gold ETFs recorded inflows of 18.4 metric tons, equivalent to $1.4 billion, increasing total holdings to 3,200 tons, as reported by the WGC in a recent analysis.

The increase in gold prices and the recent inflows raised total assets under management to a month-end high of $270.9 billion in September.

The WGC, which represents the global gold mining industry, estimated that global gold trading volumes increased by 7% month-on-month in September, averaging $259 billion daily. Additionally, average trading volumes in the over-the-counter (OTC) market rose by 10% to $176 billion.

With gold prices up 28% this year and anticipated future U.S. rate cuts, speculators expanded their total net long position on the COMEX by 6% from August, reaching 976 tons by the end of September. This marks the highest level since February 2020.