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Gold-backed ETFs saw record inflows as bullion fell in September
Global gold ETFs added $10 billion in September, lifting third-quarter inflows to a record $31 billion, while ETF holdings rose by 67 tonnes to 4,256 tonnes.
Investors increased exposure to gold via exchange-traded funds last quarter even as bullion logged its sharpest monthly drop of the year, signaling a split between ETF buying and futures activity, according to Mining.com.
The World Gold Council said global gold ETFs attracted $10 billion in September, bringing third-quarter inflows to a record $31 billion. Holdings also rose by 67 tonnes to a record 4,256 tonnes, while the gold price fell 8.5% during the month to finish September at $4,176 per ounce.
BMO Capital Markets analysts Helen Amos and George Heppel noted that gold’s six-week decline coincided with a divergence in positioning and underlying demand. They said ETFs continued to see consistent inflows into the price weakness.
Mining.com also reported that the divergence appeared driven largely by futures selling rather than investors abandoning gold, with Comex managed-money positions falling by the equivalent of 84 tonnes in September and spread positions dropping by another 156 tonnes. The futures liquidation outweighed ETF demand and helped pressure bullion lower.
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