Investor flows into gold exchange-traded products (ETPs) show investors are positioning for a reversal in the falling price of gold, according to ETF Securities.
The firm said US$54.9 million (€47.4 million) went into its gold ETPs last week – the fifth week in a row that these products saw positive investments.
“The increase in magnitude of inflows into gold ETPs is a testament of investors positioning for a recovery in gold prices,” wrote Aneeka Gupta, a researcher at ETF Securities.
Gupta said the firm believed negative sentiment towards gold has fallen excessively low and an upward correction was due.
The World Gold Council has also said it expects a rally in the gold price after the ETP market globally saw outflows between July and August.
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