Gold Pulls Back from Record High But Bullish Outlook with Rising ETF Inflows

Gold Prices Pull Back, But Weekly Gains Remain

Gold prices dipped to around $2,400 per ounce on Friday, retreating from record highs. This decline came after positive US economic data bolstered the dollar. Despite this, expectations of Federal Reserve interest rate cuts are still strong.

Markets currently see a 98% chance of a cut at the Fed's meeting, according to the CME's FedWatch Tool. This anticipation makes gold more attractive as returns on interest-bearing assets decrease.

Top Analysts Bullish About Gold

Gold prices have soared by 16% year-to-date due to factors like geopolitical tensions, inflation concerns, and strong central bank buying. While initial expectations were for multiple rate cuts in 2024, current projections suggest only one for the remaining months.

Gold prices are expected to climb to $2,500/oz by the end of 2024, according to J.P. Morgan Research estimates. Meanwhile, Morgan Stanley strategists argue that financial flows will drive the next leg higher. They note this shift is "starting to come through," predicting that gold prices could reach $2,650/oz by Q4 2024.

Gold ETFs See Inflows After Long Outflow Period

Gold Exchange-Traded Products (ETPs) are finally experiencing a positive shift over the past few months after a period of net outflows totaling $26 billion between June 2023 and April 2024. This change comes despite strong central bank buying. European investors, particularly, have been driving the recent inflows, likely due to the June rate cut. Analysts predict US investors will follow suit as rate cuts happen, further supporting gold prices.

Finding the best Gold ETFs

Gold ETFs are a great way to invest in gold. Unlike buying physical gold, which requires storage, ETFs hold the gold for you. This eliminates the hassle of managing physical metal. Additionally, ETFs allow you to purchase smaller fractions of gold, making it a budget-friendly way to add gold's potential for diversification and inflation protection to your portfolio.

Looking for the best Gold ETF? Trackinsight's global ETF screener helps you find ETFs that match your investment goals, regardless of your location (Europe, North America, Asia). According to our database, there are 119 Gold ETFs to consider.

The 5 largest Gold ETFs by assets under management for US Investors include:

1. SPDR Gold Shares ETF (GLD): $66.5B
2. iShares Gold Trust ETF (IAU): $29.4B
3. SPDR Gold MiniShares Trust (GLDM): $7.9B
4. abrdn Physical Gold Shares ETF (SGOL): $3.3B
5. iShares Gold Trust Micro (IAUM): $1.3B

The 5 largest Gold ETPs by assets under management for European Investors include:

1. Invesco Physical Gold USD ETC (SGLD): $16.7B
2. iShares Physical Gold ETC (IGLN): $15.9B
3. Xetra-Gold ETC (4GLD): $13.9B
4. ZKB Gold ETF AA (ZGLD): $5.2B
5. WisdomTree Physical Gold ETC (PHAU): $5.0B

To access the screener's advanced features and filter by other metrics, consider signing up for a free account. This account would also provide the following benefits:

Compare up to 5 ETFs side-by-side: Easily understand different options at a glance.

• Here's a comparison of the 5 largest Gold ETFs in the U.S.
• Here's a comparison of the 5 largest Gold ETPs in Europe

• Track your favorites: Create custom lists to effortlessly monitor your preferred ETFs. Export that list to Excel for deeper analysis and share it with your colleagues.
• Reverse Lookup: Find ETFs that hold specific assets you're interested in.
• Flexible sorting & filtering: Sort results by any relevant metric (expense ratio, performance, etc.) and set custom ranges for AuM, TER, and flows for more precise selection.
• Advanced metrics: Unlock a deeper level of analysis with additional data points.

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.