ETF investors are picking up interest in gold

The price of gold climbed back above the $2,500 per troy ounce mark, trading just below a record high, notes Barbara Lambrecht, commodities strategist at Commerzbank.

ETF investors are picking up interest in gold

“The apparent weakening of the US labor market has raised hopes for a faster rate cut. Today’s US labor market report could strengthen or dampen expectations accordingly. Meanwhile, new monthly statistics from the World Gold Council show that gold ETFs saw inflows for the fourth consecutive month in August, although not as much as in July.”

“Holdings are now as high as they were in mid-February. All regions saw an increase in ETF holdings, with North America and Europe seeing the largest inflows. According to WGC, falling opportunity costs, a weaker US dollar and geopolitical tensions in the Middle East are key factors explaining the interest shown by ETF investors.”