Gold Prices Stuck Near $4,160 as ETF Inflows Fail to Boost Price
Gold prices have stalled near $4,160 an ounce despite significant inflows into gold-backed exchange-traded funds (ETFs). In September alone, US-listed gold ETFs attracted a massive $3.8 billion in investments.
The influx of cash is unusual given the monthly decline in spot gold, which lost 6.6% in September, its worst performance since June.
Morgan Stanley's head of metals and mining strategy, Amy Gower, said ETF demand has remained resilient even as markets anticipated Federal Reserve tightening. She also noted central-bank buying, particularly from China, which sees $4,000 an ounce as a floor for gold prices.
However, algorithmic and momentum funds that built positions during August's rally have reversed them due to deteriorating technical signals.