Strategist: If ETF funds continue to flow out, the short-term upside potential of gold prices may be limited.

Supported by concerns about the unending US fiscal deficit, spot gold is steadily strengthening. Quasar Elizundia, a research strategist at Pepperstone, said that investors are reevaluating the long-term outlook for US sovereign risk after Moody's downgraded US credit rating. The demand for safe-haven assets like gold may increase. However, if ETF funds continue to flow out, the short-term upside potential for gold prices may be limited. He pointed out that last week, a large amount of 30 tons of gold ETF funds flowed out.