Gold Slides Amid Worries Over ETF Demand
Published on Dec 10, 2020 12:04
COMEX Gold futures plummeted yesterday as a slide from three week highs extended amid broad dollar index recovery and profit selling pressure. The metal has run up impressively this year and every sharp rally is now witnessing profit booking as the end of 2021 draws closer. Traders primarily focussed on exchange trades funds or ETF data yesterday. the According to new World Gold Council data, in November, gold-backed ETFs and similar products (gold ETFs) recorded their first net outflows in 12 months and second largest monthly outflows ever. Gold ETF holdings decreased by 107 t during the month - US$6.8 billion or 2.9% of assets under management (AUM) - as the gold price had its worst monthly move (-6.3%, US$1763/oz) since November 2016, when it dipped 7.4%. Despite lacklustre performance in November, net inflows of 916 t (US$50.3 billion) in 2020 remain well above the highest yearly amount on record, although below the record set last month (+1022 t). Total global holdings are now at 3793 t or US$215 billion. COMEX Gold tanked more than 2% to approach $1830 per ounce as the US dollar index moved up above 91 mark.
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