Despite the Federal Reserve easing monetary policy, investors have sold off gold ETFs for the fourth consecutive year

ChainCatcher news, despite gold prices hitting new highs and the Federal Reserve continuing to ease monetary policy, investors have sold off gold ETFs for the fourth consecutive year in 2024. Although optimism about 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 dollar strengthened, leading to another sell-off 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, the geopolitical risks brought about by the conflicts in Ukraine and the Middle East have prompted central banks in emerging markets, Asian investors, and consumers to purchase physical gold as a means of portfolio diversification and hedging. These factors have led to a decline in demand for gold ETFs. (Jin Shi)