According to Jinshi Data, despite record highs in gold prices and the Federal Reserve's continued monetary easing, investors sold gold ETFs for the fourth consecutive year in 2024. Optimism about the Federal Reserve's interest rate cut in 2024 helped gold ETFs rebound slightly.
However, the results of the US election in November put an end to this momentum. After Trump won the election, the dollar strengthened, which led to another sell-off of gold ETFs, and the price of gold fell from its all-time high, with funds flowing into stocks and Bitcoin.
Investors often seek safety in gold during times of political and economic uncertainty. Geopolitical risks from Ukraine and the Middle East conflict have prompted emerging market central banks, Asian investors and consumers to buy physical gold as a portfolio diversification and hedging tool. These factors have reduced demand for gold ETFs.