European investors have been selling out of gold ETFs, according to figures from the World Gold Council, with the price of the shiny metal falling back below the $1,300/oz mark during September.
US-listed ETFs have gathered more than $28 billion in September – a new annual high – despite the Federal Reserve hinting at interest rate hikes – a move intended to return to normal monetary policy and ward off another Great Depression.
Emerging market equity and commodity ETPs saw inflows following the Federal Reserve’s decision last week to raise interest rates once again, despite these areas of the market being traditionally considered interest rate sensitive and often suffering redemptions around rate hikes.
Investors have been taking money out of safe-haven gold assets as they react positively to the election of Donald Trump as US President earlier this month, but ETF Securities is predicting a rebound in the price of the precious metal as political uncertainty continues to hit sentiment.
Gold ETPs took in a lot of money in the run-up to the US Presidential election, but investors appear to be less worried about the future of stock markets and have taken money out of gold once again. What is the future for the gold price with the current economic backdrop?
Inflows into emerging market debt ETFs picked up sharply in July amid global market volatility, after Britain voted to leave the European Union and the US Federal Reserve continued to hold interest rates in its latest monthly meeting.