Global Gold Global ETF funds do not stop buying. In August they did it for the third consecutive month, managing a total portfolio of more than US $ 400,000 million, which is equivalent to almost 65% of Argentine GDP.
Gold prices continue to climb in the spot market and in that of futures, in which it flirts with the US $ 3,700. That is why it does not surprise that, together with the sustained demand of the world’s central banks, the global ETF funds are also another of the protagonists of the gold fever. The Global Golden ETFs registered their third consecutive month of tickets in August, once more led by Western funds. According to private surveys, investments managed by these ETFs reached another record last August after registering purchases for the third consecutive month.
What is the most of the Golden ETF actions? Last month, the Golden Global ETFs with physical support attracted US $ 500 millionextending its ticket streak to three months. As in July, The American and European funds led global entrieswhile Asia and other regions registered moderate outputs. However, The accumulated entry of US $ 47,000 million reached the second largest figure registered after the 2020 peak. According to LBMA data, Bloomberg, Company Filings, Ice Benchmark Administration and WGC, capital tickets in August together with a new increase in the price of gold promoted total assets under the management of Global Golden ETF 5% more, up to US $ 407,000 million, establishing a new record for the closing of the month. On the side of the holdings, it is observed that they continued to increase, with an increase of 53 tons to 3,692 tons, the highest value for the closing of the month since July 2022 although 6% below the record of 3,929 tons reached in the first week of November 2020.
Gold: Who bought and who sold?
- The American funds added US $ 4,100 million, the third consecutive monthly entry in the region. According to analysts, the continuous strength of demand can be linked to the persistent commercial risk and broader uncertainty in the market; to the consensus on short operations in dollars, which reduces the opportunity cost of maintaining gold; to The lower rates expectations as the market digested the comments of Jerome Powell (chief of the Fed) in Jackson Hole as moderate. Regarding the latter, they point out that it was possibly the most important catalyst towards the end of the month, since the capital outputs that had been observed in the days before Jackson Hole were quickly reversed, since Investors anticipated a rate cut in September. On the other hand, they also emphasize that low -cost ETFs backed by gold, often considered a long -term strategic positioning indicator, are registering their best historical year. The vision of experts is that this indicates that, beyond the market noise in the short term, Investors are constantly increasing their assignments to shelter assets in response to a context of high risks.
- For their part, European funds experienced capital tickets for the fourth consecutive month, adding US $ 1,900 million. The United Kingdom, Switzerland and Germany led the trend. It should be remembered that, in August, the United States imposed a surprising tariff of 39% to Switzerland, the highest tax to any developed country. According to experts, this sudden and unexpected blow affected the country’s economic perspectives, increased the need for refuge assets between local investors and the demand for gold. Apparently also German capitals entries may have been supported by a greater demand for shelter assets, since the growth of the German GDP of the second quarter was revised even more down, which generated fears of recession among investors. Meanwhile, with the strengthening of the euro and the Swiss Franco against the dollar, holdings in products with exchange coverage also increased. The United Kingdom also witnessed strong capital tickets during the month, probably driven by concerns about stagflation (The country’s inflation rebounded while US tariffs and an increase in employers’ taxes, which could also further boost prices, clouded growth).
- While Asian flows became negative in August, with a loss of US $ 495 million. China was the one that lost the most: the continuous strength of the variable income, with a 10% increase in August in the CSI300 stock index, kept local investors away from gold. In contrast, India registered its fourth consecutive monthly entry flow in August, promoted by a greater need for refuge assets due to the weakness of variable income, as well as by the persistent commercial and geopolitical risks worldwide. However, these flows were not enough to compensate for China’s exits. The flows in other regions remained slightly negative, with a loss of US $ 50 million. Australia’s tickets were not enough to compensate for South Africa’s departures during the month.
With respect to the negotiated volumes of ETF of gold there was a retraction in all regions, falling 9% monthly to US $ 4,500 million per day. However, OTC negotiation activities increased, reaching an average of US $171,000 million daily in the month, 12% more than in July and well above the average of 2024, of US $ 128,000 million per day. While The total total net positions in gold futures in Comex fell 3.4% during the month, closing August in 652 tons, while the long net positions of the fund managers increased 3.7% to 461 tons. According to analysts, the bullish bets of the fund managers increased considerably in early August after the news of US tariffs on Swiss gold, which caused a sudden increase in the price of gold in Comex. In addition, consecutive rises of prices towards the end of the month also promoted the increase in long positions among gold futures operators.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
