Inflows into gold ETFs continue to be positive for 10th week in a row
But outflows matched investments last week, with US investors choosing to exit
Gold exchange-traded funds (ETFs) experienced positive inflows for the tenth consecutive week last week, according to data from the World Gold Council (WGC). However, outflows matched the inflows, resulting in a net gain of $1.72 billion invested in gold ETFs. US investors led the exits from ETFs, while UK investors led the inflows, though they were generally cautious in their investment approach.
The positive trend in gold ETFs follows a decline in the price of gold, with an over 6 percent drop in the past month and an over 4 percent decrease in the past week. A spokesperson for RiddiSiddhi Bullions Ltd noted that gold had a "punishing week" with spot gold down about 2 percent, driven by factors such as rising interest rates, a strong dollar, and expectations of a Federal Reserve rate hike in October.
Darshan Desai, CEO of Aspect Bullion & Refinery, added that the festive and wedding season could provide some support to domestic demand. US investors redeemed $683 million, while British investors invested $438 million. Other countries such as China, Canada, Switzerland, Germany, and France also contributed to the inflows. Year-to-date, net investments by Europeans and Asians were nearly equal, at $16.56 million each.
The UK led country-wise investments, followed by China and India. US inflows amounted to $3.68 billion, while Switzerland, Germany, France, and Hong Kong contributed $3.26 billion, $1.98 billion, $1.91 billion, $1.91 billion, and $1.01 billion, respectively. The outlook for gold remains uncertain, with near-term decisions likely to be influenced by US economic data, Fed expectations, the dollar, and geopolitical developments.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
