Gold ETFs saw outflows for a fourth year in 2024 as investors favored higher-yield alternatives like stocks and Bitcoin, despite rising gold prices and Fed easing measures.
Gold-based exchange-traded funds (ETFs) experienced outflows for the fourth consecutive year in 2024, as investors opted to transition to more profitable alternatives.
Bloomberg reported that traders were unable to sustain their gold positions despite the Fed’s easing measures and the increase in gold prices, as their holdings experienced a decline of over 2.5%.
Nevertheless, the demand for physical gold remains robust, as geopolitical concerns have compelled certain investors and central banks to invest in bullion as a means of protecting against black swan events, U.S. inflation, and dollar devaluation.
The selloff was also influenced by the dollar’s resurgence in the wake of President-Elect Trump’s victory, as prices decreased and funds were directed toward stocks and even cryptocurrency.
