in global gold-backed ETFs and similar products fell by 40t to 2,353t in August
– the third consecutive month – pushing assets under management (US$ AUM) down
3% relative to July. Funds listed in China had net gains as investors hedged
trade risks and currency weakness. Flows in Europe were mostly flat. Global
outflows were led by North American funds which lost US$1.65bn.
reports of COMEX futures show extreme short positioning as gold’s pullback
generated additional selling pressure from money managers. But such negative
positioning, however, has historically preceded rallies in the price of gold,
as we discussed in detail in our recent note Gold recoils amid selloff but may
at Regional fund flows, North American funds saw outflows of 44t (US$1.65bn,
3.6% AUM), Holdings in European funds grew by 4t (US$167mn, 0.4%), Funds listed
in Asia increased by 2t (US$24mn, 0.7%) & other regions saw a reduction in
holdings of 2t (US$50mn, 3.9%).