Gold ETF holdings increased by 68.1 tonnes, or 2% of assets under management, despite gold's worst monthly price performance since November 2016.

"Despite gold experiencing its weakest monthly price performance in four years, investment momentum for gold ETFs continued, underscoring gold's positioning as a long-term strategic asset," WGF investment research manager Adam Perlaky told Mining Journal.

Global net inflows of 1,003t so far this year has led overall gold investment demand and taken total ETF gold holdings to a record 3,880t and US$235 billion of AUM.

North American funds led global inflows again in September, reporting inflows of 34.6t. After recording outflows in August, European funds added 26t of inflows in September, while Asian funds added 6.8t as two new funds launched in China for a second consecutive month, bringing the total number of new funds in the region to seven.

Safe-haven demand and strong year-to-date returns in the domestic gold price fostered Indian fund inflows during the month, said the WGC.

Funds listed in other regions experienced small inflows of 0.6t in September.

"We expect gold to benefit from continued tailwinds created by volatility resulting from uncertainty around the US presidential election, a no-deal Brexit, and spiking COVID infections," said Perlaky. "The global reach of gold ETFs is expanding with new funds launching in China for the second consecutive month and a 17% increase in holdings in Asia in Q3."