According to ChainCatcher, despite gold prices reaching new highs and the Federal Reserve continuing to ease monetary policy, investors have sold off gold ETFs for the fourth consecutive year in 2024. While optimism about the Federal Reserve's interest rate cuts in 2024 helped gold ETFs rebound slightly, the results of the November U.S. elections ended this new momentum. After Trump won the election, the U.S. dollar strengthened, leading to another sell-off of these ETFs, causing gold prices to drop from their historical highs as investors redirected their funds to other areas, including stocks and Bitcoin. During times of political and economic uncertainty, investors typically seek refuge in gold.
At the same time, the geopolitical risks brought about by the conflicts in Ukraine and the Middle East have prompted emerging market central banks, Asian investors, and consumers to purchase physical gold as a means of portfolio diversification and hedging. These factors have led to a decline in demand for gold ETFs. (Jin Shi)