Gold Prices Stable Despite ETF Outflows

Gold prices have remained stable due to sustained central bank purchases countering gold-backed exchange-traded fund (ETF) outflows, according to ING analysis.

Central banks, particularly in emerging markets, have been steadily diversifying their reserves away from the US dollar, with gold playing a key role. This structural demand has created a robust floor under gold prices, even as Western investors retreat through ETF redemptions.

The divergence in buying behavior between central banks and ETF investors is keeping the gold market in balance, ING notes. Central bank purchases have been driven by a long-term shift in reserve management priorities, fueled by geopolitical tensions and a desire for assets not tied to any single country's fiscal policy.