Gold ETFs see record inflows despite price volatility

Gold-backed exchange-traded funds (ETFs) are experiencing significant capital inflows despite recent volatility in bullion prices. The SPDR Gold Shares (GLD), the world’s largest gold ETF, reported a weekly net inflow of approximately $571 million, bringing its holdings to 1,061.11 tonnes as of early October. This represents a notable increase in holdings compared to previous weeks.

On a broader scale, the World Gold Council reported that global gold ETFs attracted $10 billion in September, contributing to a record third-quarter inflow of $31 billion. Total global holdings reached a record 4,256 tonnes. Analysts from BMO Capital Markets noted a divergence between ETF demand and the futures market; while ETFs saw consistent inflows during price weakness, futures liquidation and rising U.S. Treasury yields contributed to a decline in gold prices.

In contrast to the gold sector, the iShares Silver Trust (SLV) saw a decrease in holdings, reporting a reduction of approximately 40.43 tonnes in a single week.