Gold ETF outflows accelerates to fourth month in September; turbulence seen in Q4: World Gold Council

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(Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) Europe also witnessed a fourth consecutive monthly outflow in gold ETFs. Regional gold ETFs suffered a loss of over $1 billion, or 28 tonnes during September – a month in which the European Central Bank delivered its tenth consecutive rate hike and reiterated that rates will stay “at sufficiently restrictive levels for as long as necessary." Gold prices declined 3.7% in September dragged by a sharp uptick in bond yields alongside a stronger dollar.

The sell off at the end of the month was also likely the result of a strong adverse reaction to US economic data, a fall in the Chinese local premium and a negative technical breach. With bond yields continuing to move higher alongside a still buoyant US economy, gold is likely to face continued turbulence over the next few weeks, WGC report said.

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“This could represent a buying opportunity to some investors should the market become excessively short," the report said. Meanwhile, September saw continued net outflows from global gold Exchange Traded Funds (ETFs), extending their losing streak to four months.

“Gold is likely to face some choppiness over the next few weeks as rising real yields, a firmer US dollar and a buoyant economy batter some sectors of investment demand. But longer-term concerns and continued central bank