North American Gold ETF Buying Jumped From $71 Million to $7.7 Billion in One Month. Can GLDM Hold Up?

North American physically backed gold ETFs experienced a massive surge in demand in August, with net buying jumping from $71 million in July to $7.7 billion in August. This 108-fold increase coincided with broader global inflows of $18 billion, pushing collective global gold holdings to an all-time record of 4,189 metric tons. The dramatic influx of capital into gold products was spurred by macroeconomic uncertainty, a 20.7% rise in the VIX, and elevated inflation metrics. However, gold faces headwinds following the Federal Reserve's decision to raise its policy rate by 25 basis points on September 16, pushing spot gold down 1.2% to $4,240.10 per ounce. Furthermore, the 10-year Treasury yield reached 5.00%, and 10-year real yields climbed to 2.68%, increasing the opportunity cost of holding non-yielding precious metals. Despite the pullback from August highs near $4,683 per ounce, gold's orderly consolidation suggests structural institutional support and portfolio diversification demand rather than pure short-term speculation.