North American Gold ETFs See Record Dollar Outflows as Interest Rate Expectations Shift
North American gold ETFs lost 87 tonnes of gold valued at $13 billion in March. The losses ended a nine-month streak of inflows for the region. This movement was driven by a higher US dollar and rising interest rates, which increased the opportunity cost of holding gold. Rate expectations shifted from potential cuts in 2026 to a projection that rates will remain unchanged through September 2027. These factors, combined with risk-off conditions triggered by Operation Epic Fury and long positioning from Commodity Trading Advisors, amplified downside price momentum. The regional decline contributed to a net global outflow of 84.8 tonnes of gold from gold-backed funds. This represented a net loss of $12 billion, the largest monthly outflow in dollar terms on record.
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