GLD Sees $1.4 Billion in Outflows in October
Key Facts
SPDR Gold Shares, known by the ticker GLD, recorded $1.4 billion in outflows during October, according to data reported by Benzinga, as gold rose again at the start of November. The flows cover the fund’s activity over the month and do not mean money left during the November 2 session when prices rebounded. The iShares Gold Trust, known by the ticker IAU, also lost more than $70 million in October. That places both funds on the outflow side for the month, though the figures alone do not establish the reasons for investors’ decisions. In the November 2 session, spot gold rose as markets tracked U.S. monetary policy signals.
By 0440 GMT on November 2, spot gold had risen 0.7% to $3900.90 an ounce, according to a Business Recorder report republished by Investify. Argaam data later showed a price of $3909.21 an ounce at 09:20 Mecca time, up $34.59, or 0.90%. In EL7 data, XAU/USD closed at $3949.33 on November 2, compared with a close of $3875.645 on October 30. These figures reflect readings from different sources and times, and do not represent a single price or a unified session close. Monday’s session was a rebound after a sharp decline at the end of the previous week.
Gold had fallen 3.5% on Friday, October 30, to its lowest level since October 2025, breaking below $4000 an ounce, according to a Reuters report republished by MarketScreener. The report linked the gold sell-off to a technology stock sell-off and the resulting margin calls, which pushed investors to sell safe-haven assets. Benzinga said gold ended the trading week at $3875 an ounce, its lowest level since October of the previous year and more than 30% below its record high. On November 2, Reuters described the move as a rebound after the previous session’s sell-off. October’s fund flows thus came amid broader volatility, but the flow data alone do not identify its drivers.
A Reuters report attributed gold’s rebound on Monday to lower oil prices, which eased inflation concerns, as investors awaited Federal Reserve officials’ comments for signals on the interest-rate path. Argaam reported the same trend, noting that the decline in oil helped ease inflation concerns. The dollar index was steady at 101.85 points against a basket of six major currencies in the report’s trading. These reports do not directly link lower oil prices to the funds’ October outflows. Gold’s session gain therefore coincided with easing concerns about some inflation pressures, while U.S. monetary policy remained a focus for the market.
The Federal Reserve kept its interest-rate range at 3.75% to 4% in its October decision, while two officials voted in favor of raising rates, according to Benzinga. Meanwhile, the CME FedWatch tool put the probability of a rate hike at the December meeting at 73%, according to Argaam, citing traders. That is a market-implied probability, not a Fed decision or a commitment to a particular rate path. The two officials’ votes indicate disagreement within the policy committee over the decision, while the official range remained unchanged in October. Gold markets therefore followed comments from bank officials for signs about the next meeting.
October’s outflows followed a month that saw strong inflows into global gold-backed exchange-traded funds: the funds recorded $10 billion, equivalent to 67 tonnes, in September despite a decline in the metal’s price, according to the World Gold Council. Gold ended September at $4176 an ounce, down 8.5% month on month, with the council partly attributing the decline to higher yields and the dollar. Over the same period, net managed-money positions on COMEX fell by $12 billion, equivalent to 84 tonnes, showing a divergence between fund flows and futures positions. U.K.-listed funds also attracted 54 tonnes in the third quarter, with inflows recorded in 12 of the 13 weeks through September 25. The data show that fund flows, futures positions and gold prices did not necessarily move in the same direction during those periods.
U.S. nonfarm payrolls for October were the next catalyst for monitoring gold identified by the Benzinga report. Economists expected more than 50,000 jobs to be added, after an increase of 29,000 in September. Investors’ attention also turned to the U.S. midterm elections scheduled for November 3, according to a Reuters update published on November 2. The report said markets were watching the elections’ potential implications for fiscal policy and sentiment. This coincided with investors awaiting comments from Federal Reserve officials, while the probability of a December rate hike remained at 73% according to the CME FedWatch tool, as reported by Argaam.