Global exchange-traded funds (ETFs) backed by physical gold saw inflows for the sixth consecutive month in October, with year-to-date flows turning positive for the first time this year, the Council said on Thursday World Gold Market (CMO).
Demand was supported by North American and Asian flows, the WGC added.
As geopolitical tensions rise and market uncertainties persist, investors have flocked to gold ETFs, which act as wealth vaults, holding gold in investors’ names and leading to a substantial demand for the precious metal.
Gold-backed ETFs attracted $4.3 billion in inflows in October, bringing collective holdings to 3,244 tonnes, according to the WGC.
After three years of outflows, driven by high interest rates, the last six months have been marked by a reversal of the trend.
Continued inflows and record gold prices brought global assets under management to a month-end record of $286 billion in October, the WGC said in a note.
The WGC, an industry body for gold miners around the world, said demand for gold in North America had been boosted by uncertainty surrounding the US presidential election.
Military escalation in the Middle East, as well as reports that North Korean soldiers have joined Russia in the Ukraine conflict, may also have boosted demand for gold ETFs.
The WGC added that global gold trading volume increased slightly, supported by over-the-counter (OTC) and ETF activity.
Gold is poised to become one of the best performing assets of 2024, with prices up 33% year to date. The metal hit a record high of $2,790.15 an ounce on Oct. 31, fueled by the start of U.S. interest rate cuts and geopolitical tensions. [GOL/]
