Australian gold exchange-traded funds (ETFs) are on track for a record year, fueled by strong investor demand, according to Global X. Global X is an exchange-traded fund shop that offers investors access to a range of investment solutions. The firm is recognised for its thematic and alternative investment strategies.
In the year leading up to September 5, physical gold ETFs listed on the ASX have seen significant interest, pulling in $660.3 million in net inflows. Global X’s gold ETF products have accounted for a substantial portion of this activity, attracting $369.1 million alone.
Global X investment strategist Justin Lin indicated that current trends make a record-breaking year highly probable. He noted that inflows are currently exceeding the pace of 2020 when physical gold ETFs saw $982 million in net inflows. The firm anticipates continued increases in both gold and silver prices as lower interest rates make these precious metals more attractive investments compared to assets that generate yield, like government bonds or cash.
Lin stated that he expects gold prices to climb even higher, suggesting the presence of a strong secular bull market. Global X has set a year-end gold price target of $US4000 per ounce.
