Commodities
Investors Sell Gold ETFs for Fourth Year Even With Fed Easing
- Buying momentum faded as investors bailed after US elections
- Some investors favored buying physical bullion over ETFs
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Investors sold off gold-backed exchange-traded funds for a fourth straight year in 2024 despite a backdrop of repeated record high prices and the start of monetary easing by the Federal Reserve.
While optimism of Fed interest rate cuts in 2024 helped gold ETFs rebound a bit, the US election results in November ended that newfound momentum. A stronger dollar following Donald Trump’s election win saw a renewed selloff of those exchange-traded funds, with bullion prices declining from an all-time high as investors redirected money elsewhere, including equities and Bitcoin.