North American Funds Withdraw from Gold Amid Fiscal Pressure
What happened
Global exchange-traded funds recorded $1.1 billion in net outflows during the week ended October 23. North America accounted for $1.7 billion of these withdrawals, while Europe saw $485 million in inflows. Spot gold dropped 4% in a single week to the low $4,000s per ounce, a 7% decline since the start of the year.
From mining.com
Why it matters
The decline in gold prices is drawing physical buyers back into the market, particularly in Asia. Lower prices have lifted Indian bullion premiums, and weekly volume in a physically settled gold contract on the Shanghai Gold Exchange reached its highest level since April, according to BMO Capital Markets.
From mining.com
Who's involved
- North AmericaSource of significant gold fund withdrawals
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- ChinaSpeculative
China might see increased gold reserve accumulation and higher Asian buying activity due to lower gold prices.
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The entities involved
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Kazakhstan
sovereign state in Eastern Europe and Central Asia
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North America
continent in the Americas