Gold ETFs registered fifth month of inflows in September, says WGC

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

Gold ETFs store bullion for investors and account for a significant amount of investment demand for the precious metal that touched a record high of $2,685.42 an ounce on Sept. 26, buoyed by the start of U.S. interest rate cuts.

After three consecutive years of outflows against a backdrop of high interest rates, the past five months have turned year-to-date net flows in dollar terms to a positive $389 million.

Gold ETFs registered inflows of 18.4 metric tons, or $1.4 billion, in September to lift collective holdings to 3,200 tons, the WGC said in a research note.

A stronger gold price and recent inflows pushed total assets under management to a month-end peak of $270.9 billion in September.

The WGC, and industry body grouping global gold miners, estimates that worldwide gold trading volumes rose in September by 7% month on month to $259 billion a day while average trading volumes in the over-the-counter (OTC) market added 10% to $176 billion.

With the gold price up 28% this year and the prospect of future U.S. rate cuts, speculators increased their total net long position on COMEX by 6% from August to 976 tons by the end of September, the highest level since February 2020.