World Gold Council calls US gold ETF flows 'fairly benign'

The World Gold Council described gold ETF flows in the United States as "fairly benign", saying that investors staying in the funds for longer is a more positive signal, according to its weekly report.

The council said managed-money positions on COMEX fell about 11 tonnes since mid-October, while other reportable, non-reportable and spreading positions dropped about 70 tonnes.

The council attributed part of gold's recent weakness to markets repricing the expected path of US interest rates, which raised the opportunity cost of holding the metal.

The council says gold now faces softer demand from US investors, even as stickier ETF holders are more positive, warning that this could pressure gold lower until an attractive floor is reached.

What do these terms mean?

Gold ETF: An exchange-traded fund that tracks the price of gold and lets an investor buy a share instead of the physical metal.

COMEX: A New York market for futures trading in commodities and metals, whose positions are watched as an indicator of investor direction.

Managed-money positions: The net long or short positions held by fund managers in futures contracts.

Opportunity cost: The return an investor gives up by holding an asset that pays no interest, such as gold, instead of another asset.