Gold Soars to Record High on ETF Inflows, Hedge Fund Demand

The gold spot price has reached a record high of $4,697 in August, marking its fastest monthly rise since September 1999. Saxo Bank Commodity Strategist Ole Hansen warned investors about the market's rapid growth, citing ETF inflows and hedge fund demand as contributing factors.

Hansen noted that gold's sharp acceleration has increased the risk of a sharp correction, which could be triggered by hawkish Fed messages, a recovering dollar, or profit-taking before the $4,770 resistance level.

The August price gain of 15% is the fastest monthly rise since September 1999. Gold ETF holdings have increased by approximately 60 tons this month, and hedge funds have raised their net long positions in gold futures to the highest level in 11 months.