According to ChainCatcher, despite gold prices reaching new highs and the Federal Reserve continuing to loosen monetary policy, investors have sold gold ETFs for the fourth consecutive year in 2024. Although optimism over 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 round of selling of these ETFs, and gold prices fell from historical highs as investors shifted their funds to other areas, including stocks and Bitcoin. During times of political and economic uncertainty, investors typically seek refuge in gold.
Meanwhile, geopolitical risks arising from the Ukraine and Middle East conflicts have prompted emerging market central banks, Asian investors, and consumers to purchase physical gold as a diversification and hedging tool for their portfolios. These factors have led to a decrease in demand for gold ETFs. (Jin Shi)