Gold prices are down significantly on Monday morning. Gold prices are facing downward pressure as U.S. stock indexes are poised to open at record highs, dampening the appeal of safe-haven assets. The precious metal’s decline is further exacerbated by the surge in the U.S. dollar index to a 4.5-month high, making dollar-denominated gold more expensive for holders of other currencies.The price of gold is trading at $2623.77, down $61.00. The price of silver is trading at $30.68, down 62 cents.
The World Gold Council reports global gold ETFs continued their positive trend in October 2024, marking the sixth consecutive month of inflows with a US$4.3 billion increase. This surge, coupled with record-breaking gold prices, pushed global assets under management to a new high of US$286 billion, representing a 5% monthly increase. North America led the inflows for the fourth straight month, while Europe remained the only region experiencing outflows. Year-to-date, global gold ETF demand turned positive for the first time in 2024, with total inflows reaching US$4.7 billion and assets under management soaring by 33%.
Regional performance varied significantly, with North American funds adding US$2.7 billion despite rising yields and a stronger dollar. This demand was likely fueled by uncertainty surrounding the US Presidential election and escalating geopolitical tensions. Asian funds, particularly in China and India, attracted US$2.1 billion, extending the region’s inflow streak to 20 months. In contrast, European funds saw outflows of US$563 million, attributed to rebounding yields and weaker local currencies. Global gold trading volumes also increased, averaging US$268 billion in October, a 4% month-on-month rise, supported by improved OTC and ETF activities.
