Gold ETFs records first net inflows in August

In some cases sharply falling equity markets in Europe and the US, coupled with a US dollar that saw phases of weakness, allowed gold to climb to just shy of $1,150 per troy ounce for a time yesterday. This morning sees gold trading at around $1,140. 

After three consecutive months of outflows, holdings in the gold ETFs tracked by Bloomberg saw minor inflows of 6.4 tons again in August. All of the inflows were recorded in the second half of the month, contributing to the interim price rise to $1,170 per troy ounce. 

As well as investment demand being higher again, demand for coins was also robust once more, at least in the US. According to data from the U.S. Mint, 101,500 ounces of gold coins were sold in August, four times as many as last August. At the same time, this was the second-strongest month of sales so far this year, says Commerzbank.