Gold ETF Inflows Stalled by Weak Price Momentum
Gold prices have stalled near $4,160 an ounce despite significant inflows into gold-backed exchange-traded funds (ETFs). In September, US-listed ETFs attracted a total of $3.8 billion in investments, following $7.9 billion in August.
Morgan Stanley's head of metals and mining strategy, Amy Gower, stated that ETF demand has remained resilient even as markets anticipated Federal Reserve tightening. Central-bank buying, particularly from China, is also providing support for gold prices.
Glover noted that $4,000 an ounce is considered a floor price for gold, but added that long-term investors have not abandoned bullion. However, the contrast between investment demand and weak price momentum suggests that gold's price may be struggling to keep pace with inflows.