Gold ETFs See Continued Inflows in September

LONDON (Reuters) – Global physically backed gold exchange-traded funds (ETFs) recorded their fifth consecutive month of inflows in September, as funds listed in North America increased their holdings, according to the World Gold Council (WGC) on Tuesday.

Gold ETFs serve as a storage for bullion for investors, contributing significantly to the demand for gold, which reached a record high of $2,685.42 per ounce on September 26, fueled by expectations of U.S. interest rate cuts.

Following three years of outflows amid high interest rates, the last five months have turned year-to-date net flows into positive territory, amounting to $389 million.

In September, gold ETFs saw inflows of 18.4 metric tons, or $1.4 billion, raising total holdings to 3,200 tons as reported by the WGC.

Increased gold prices and recent inflows lifted total assets under management to a month-end record of $270.9 billion.

The WGC also noted a 7% month-on-month rise in global gold trading volumes to $259 billion per day in September, with average over-the-counter (OTC) trading volumes up by 10% to $176 billion.

With gold prices rising by 28% this year and potential future U.S. rate cuts, speculators increased their net long positions on COMEX by 6% from August to 976 tons by September's end, marking the highest level since February 2020.