For starters, global gold-backed ETFs and similar products attracted $1.0 billion in net inflows, following the deceleration that started in September. Meanwhile, global assets under management climbed 3.1% from September.
Supporting the sudden surge, gold experienced a positive price performance of 2.3%, which the World Gold Council argued was a key driver of inflows in North American and European funds, closing out the month with inflows of $561 million – an 1.2% increase in AUM, and $678 million – a 1.7% increase in AUM, respectively.
Additionally, U.S. dollar-hedged gold also capitalized on the stronger dollar and risk-off sentiment, advancing 4.3% for the month. Gold and the U.S. dollar have historically exhibited an inverse correlation, but gold investors could use the SPDR Long Dollar Gold Trust (NYSEArca: GLDW) as a way to diminish USD currency risks. GLDW incorporates a currency swap mechanism to effectively gain exposure to gold paid for in foreign currencies, rather than in dollars. Investors can look to GLDW in environment where the dollar is strengthening.
For more information on the gold market, visit our gold category.