Gold Prices Stagnate Despite $3.8 Billion ETF Inflows
Despite gold prices stagnating near $4,160 an ounce, billions of dollars continued flowing into bullion-backed exchange-traded funds (ETFs). US-listed gold ETFs attracted $3.8 billion in September, following $7.9 billion in August.
The problem is increasingly macro, with Treasury yields remaining near multi-decade highs and the dollar close to a two-month peak.
Morgan Stanley's head of metals and mining strategy, Amy Gower, believes ETF demand has remained resilient even as markets anticipated Federal Reserve tightening. She points to central-bank buying, particularly from China, saying $4,000 an ounce is a floor for gold prices.
However, selling pressure appears concentrated elsewhere, with algorithmic and momentum funds reversing their positions after August's rally.