Gold ETF flows snapped back in August.
Global gold-backed ETFs added $18B during the month, according to the World Gold Council. That was the second-largest monthly inflow on record and helped push collective holdings up by 121 tonnes to a record 4,189 tonnes.
The shift was led by Western investors. European-listed funds added $7.9B in August, while North American-listed funds added $7.7B. Asian-listed funds added $2.0B, and other regions added $234M.
The market signal is that gold is becoming an investor positioning story again. The metal is not only moving on price momentum; ETF demand is showing up in the actual flows and holdings data. The caveat is that ETF demand can reverse quickly when macro conditions, rates, or the dollar move against the trade.