Asian gold ETF funds surge, raising alarms; market worries that gold prices are approaching a cyclical top

BlockBeats News, January 30 — Bloomberg data shows that in January, net inflows into Asian-listed precious metals ETFs reached approximately $7.1 billion, with multiple funds hitting record highs. The funds mainly came from Chinese retail investors. The Hu’an Yifu Gold ETF alone attracted about $1.9 billion.

Analysts point out that a surge of retail investors often signals the late stage of a market cycle. Coupled with the gold price RSI rising to around 90 in the extreme overbought zone, the risk of a short-term correction increases.

The recent rapid rise in gold prices has been supported by sustained central bank purchases and ETF inflows into physical gold. Data from the World Gold Council shows that, except for last May, the holdings of gold-backed funds increased every month last year. Additionally, due to the unpredictable US policies and the trend of increasing US isolation, investors are shifting towards assets outside the US dollar, which also benefits precious metals.