Gold steadies as traders weigh outlook for Fed rate cuts
Bullion traded near $2,626 an ounce in thin trading after closing 1.1% higher on Friday.
Global physically backed gold exchange traded funds (ETFs) saw the second consecutive month of inflows in June due to additions to holdings by Europe- and Asia-listed funds, the World Gold Council (WGC) said on Tuesday.
Gold ETFs, storing bullion for investors, are a major category of investment demand for the precious metal, which touched a record high of $2,449.89 per ounce on May 20 amid safe-haven demand driven by geopolitical and economic uncertainty.
However, gold ETFs had three consecutive years of outflows amid high global interest rates, and the latest two months of inflows only slightly limited the losses for the first half of 2024, the WGC said.
Gold ETFs saw the inflow of 17.5 metric tons, or $1.4 billion, in June, the WGC, an industry body whose members are global gold miners, said in a research note.
A stronger gold price and recent inflows pushed the total assets under management to $233.3 billion, but their collective holdings at 3,105.5 tons remain near their lowest since 2020.
For January-June 2024, the outflow totalled $6.7 billion, or 120 tonnes, the largest loss since the first half of 2013, with outflows led by funds in Europe and North America, the WGC said. Asia was the only region with inflows so far this year.
(By Polina Devitt; Editing by David Evans)
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