Steady inflows in Asia & rising demand in India!
Gold ETFs show resilience amid global economic shifts Recently, the World Gold Council published their Gold ETF Commentary for the September 2024. The Report said, once again, the region saw FX hedging related inflows, albeit at a slower pace than August, driven mainly by continued strength in local currencies against the dollar. Asian funds attracted US$175mn in September, extending the region’s inflow streak to 20 months. India again saw strong inflows, driven by factors not too dissimilar from previous months. At the same time, the strong gold price momentum and elevated geopolitical risk were contributors. Increasing net longs were mainly contributed by money managers – their net positions reached 793t as of September, 8% higher than the end-August level and 84% above the H1 average of 430t. Similar to previous months, gold’s eye-catching performance and investors’ rising bets on the Fed’s future rate cuts were main drivers. In the context of Fed Rate, Colin Shah,