In this way, spot gold exceeded US$2,300 with an intraday increase of 0.3%. “With the US elections less than three weeks away, it is likely that the Market caution remains a key issue. The tight race between Donald Trump and Kamala Harris adds another layer of uncertainty, spurring demand for safe-haven assets,” said Lukman Otunuga of FXTM.
Gold has added more than 30% so far this yearwith an unprecedented rebound driven by expectations that the Fed to cut rates again this year after a large reduction last month and in the midst of the geopolitical uncertainties that are marking the current situation.
The European Central Bank is also expected to approve its first consecutive rate cut in 13 years later in the day. Lower rates and geopolitical tensions They tend to boost bullion, which does not earn interest and is considered a safe asset.
In the United States, retail sales and industrial production for September, as well as weekly unemployment benefit claims, will be published during the day. In other precious metals, spot silver fell 0.3% to $31.57 an ounce; platinum improved 0.6%, to $999.20; and palladium fell 0.4%, to $1,019.56.
Gold rush: ETF funds recorded fund inflows for the fifth consecutive month
He Gold had another fantastic month in Septemberdriven by the increasing geopolitical tensions –which have been extended to October- and a 50 basis point rate cut by the Fed which together with other factors took the price to levels of US$2,630, almost 5% in one month. Under this context, Physically-backed global gold ETFs were once again in the spotlight, extending their inflow streak for the fifth consecutive month..
Data collected by Bloomberg, Company Filings, ICE Benchmark Administration, and the WGC show that the Last month, globally physically-backed gold ETFs recorded their fifth consecutive monthly inflow, attracting a net $1.4 billion. The main inflows were concentrated in North America while Europe was the only region that experienced outflows, albeit slight.
The year-to-date balance shows that continued inflows in recent months reduced outflows from global gold ETFs to a positive level of $389 millionwhile the most recent flows, coupled with the rise in the price of gold, catapulted the value of total assets under management by 26%. It should be noted that North American fund flows have so far become positive, leaving Europe as the only region with outflows so far in 2024.
Source: Ambito
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