Gold ETFs continue to slide in September driving net outflows in Q3

World Gold Council/Gold Hub

Repost from 10-13-2021

“Gold-backed ETFs (gold ETFs) experienced net outflows of 15.2 tonnes (t) (-US$830mn, -0.4% AUM) in September. Outflows in Europe and North America were only partially offset by inflows in Asia. Global gold ETF holdings fell to 3,592t (US$201bn) during the month  – the lowest tonnage level since April – as the gold price fell on the back of rising yields, a stronger dollar, and a reduction in COMEX managed money net long positions.”

USAGOLD note: Analysts point to ETF inventory flows as an indicator of price direction because that is where institutional interest manifests itself. At the moment, institutions are essentially out of the gold market – neither buyers or sellers, as shown in the chart below. Note, too, the close correlation between price advances and declines and ETF inflows and outflows. Behavior among fund and institutions, we will add, is mercurial. The present indifference could turn to strong interest in a heartbeat.

overlay chart showing gold ETF inflows and outflows and the price of gold
Chart courtesy of the World Gold Council • • • Click to enlarge

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