A Record $31 Billion Gold Rush Is Sending Investors a Strange Warning About the Bond Market - 24/7 Wall St.

AI desk brief

Record third-quarter inflows into physically backed gold ETFs hit $31bn, including $10bn added in September even as gold fell 8.5% and spot traded around $4,176/oz at month-end. Global gold ETF holdings reached a record 4,256 tonnes, while managed-money net longs in COMEX gold futures fell by about 84 tonnes, highlighting a split between physical ETF buyers and futures sellers.

The article argues the unusual resilience of gold buying came despite a 53bp rise in the 10-year Treasury yield during September and a stronger dollar, conditions that normally weigh on bullion. It flags rising sovereign-debt/fiscal-risk concerns as a possible explanation, and notes that further upside likely depends on whether 10-year yields stay near 5.22% and whether futures liquidation slows.