September was an unusual month for gold, says the World Gold Council: prices fell more than 8% even as global gold ETFs drew in over 70 tonnes.
The monthly decline ranks in the 93rd percentile of price falls while the inflow ranks in the 77th percentile — a combination the Council says has never been observed before. The culprit was futures positioning: COMEX managed-money positions fell by 84-tonne equivalents and calendar-spread positions by 156-tonne equivalents.
Context for the week: a weaker jobs report and stable PCE inflation trimmed near-term Fed hike expectations, while inflation accelerated in the eurozone and Tokyo, China announced fresh growth measures, and Australia’s central bank raised rates. Spot gold stood at $4,148.74 as of Monday afternoon.
The note is the Council’s Weekly Markets Monitor for October 5.
