Asian Gold ETF Inflow Surge Raises Alarm, Market Concerned About Gold Price Approaching Near-Term Top

BlockBeats News, January 30th, Bloomberg data shows that in January, Asian-listed precious metal ETFs saw a net inflow of around $7.1 billion, with multiple funds hitting a historical high, with funds mainly coming from Chinese retail investors. Huaxia E-Fund Gold ETF attracted approximately $1.9 billion in a single product.

Analysts pointed out that a concentration of retail investors often signals the end of a market rally, especially coupled with the gold price's RSI rising to an extremely overbought level of around 90, increasing the short-term risk of a pullback.

The recent sharp rise in the gold price has been supported by central banks' continued purchases and inflows into physically-backed gold ETFs. Data from the World Gold Council shows that the holdings of gold-backed funds, except for May last year, have increased every month last year. Furthermore, due to the unpredictability of U.S. policies and the country's increasing isolationist trend, investors are turning to non-dollar assets, benefiting precious metals.