Gold-based ETFs saw a decline in investment for the fourth year running, decreasing by more than 2.5%. This trend continued even as gold prices ROSE, largely due to traders seeking alternatives with potentially higher returns.
Despite ETFs losing traction, the appeal of physical gold endures, driven by fears around geopolitical disturbances and inflation. The dollar’s strengthening in the wake of political shifts has further impacted this shift, diverting capital to areas like stocks and cryptocurrency, particularly BTC.