According to a report by the World Gold Council (WGC), global physically-backed gold exchange-traded funds (ETFs) experienced their fifth consecutive month of inflows in September. This surge was primarily driven by increased holdings in North American-listed funds. Gold ETFs, instruments used by investors to store physical gold, are significant contributors to the demand for precious metal investments. On September 26, gold prices hit a historic high of $2,685.42 per ounce, coinciding with the onset of interest rate cuts in the U.S.
After three years of outflows under high interest rate conditions, net inflows, calculated in dollars, turned positive over the past five months, totaling $389 million. In September alone, gold ETFs saw inflows of 18.4 metric tons, approximately $1.4 billion, pushing the global total holdings to 3,200 metric tons. The WGC report highlighted that the rise in gold prices and recent inflows led to a peak in assets under management, reaching $270.9 billion by the end of September.
The WGC also estimated a 7% month-over-month increase in global gold trading volume for September, reaching $259 billion per day. Meanwhile, the over-the-counter (OTC) market saw a 10% rise in average daily trading volume, reaching $176 billion.
With gold prices up 28% this year and the prospect of future U.S. interest rate cuts, speculative net long positions on the COMEX rose by 6% by the end of September, reaching 976 metric tons, marking the highest level since February 2020.
