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Advance Gold $AAX.ca – Largest Gold ETF Inflows in Three Years Boosted Demand for Yellow Metal in the Third Quarter

Posted by AGORACOM at 7:56 PM on Tuesday, November 5th, 2019

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A surge in speculation led to an increase in gold demand in the third quarter, according to a World Gold Council report released Tuesday.

Exchange-traded fund inflows shot higher by the largest amount since the first quarter of 2016, in what the council attributed to accommodative monetary policies, safe-haven and momentum buying. During the third quarter, the Federal Reserve cut interest rates twice, and the European Central Bank cut interest rates in a package of easing measures.

Leading gold ETFs include the SPDR Gold Trust GLD, +0.01%, iShares Gold Trust IAU, +0.07%   and the Aberdeen Standard Physical Swiss Gold Shares ETF SGOL, -1.51%.

Overall gold demand rose just 3% during the quarter, as jewelry demand shrank by 16% as the yellow metal’s prices rose. 

Gold futures GC00, -1.67%  were holding above the $1,500 an ounce level on Tuesday and have climbed by 19% over the last 12 months.

Central-bank buying fell by 38%, as the third quarter of 2018 featured the highest amount of buying on record. Bar and coin demand dropped by half.

The gold supply rose by 4%, helped by a 10% increase in recycling.

SOURCE: https://www.marketwatch.com/story/largest-etf-inflows-in-three-years-drove-gold-demand-higher-in-the-third-quarter-2019-11-05

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