World gold prices have not changed much

In its Commodity Outlook 2025 report, TD Securities analysts noted that the Fed's rate-cutting cycle, geopolitical uncertainty and strong central bank demand for gold have pushed gold prices to record highs this year, but capital flows have not provided strong support.

"There is no shortage of compelling macro stories that have fueled gold's rally in recent months ahead of the US election. However, the gold rally has not been supported by capital flows.

Modules have maintained a 'maximum buy' status since August, confirmed by the largely unchanged COT report. In Shanghai, traders have sold nearly 35 tonnes of nominal gold in recent weeks as domestic investment opportunities have become more attractive.

Gold buying has been driven largely by traditional ETFs and China. Fund managers have largely eliminated short positions. At the same time, rising US dollar and US interest rates have reduced the attractiveness of gold to Western capital inflows in the short term."