Seven in a row rise for gold ETFs

GOLD-backed exchange-traded funds recorded their seventh consecutive month of positive flows, adding 104 tonnes in June – equivalent to $5.6 billion or 2.7% of assets under management (AUM), the World Gold Council reports.
Seven in a row rise for gold ETFs Seven in a row rise for gold ETFs Seven in a row rise for gold ETFs Seven in a row rise for gold ETFs Seven in a row rise for gold ETFs

Staff Reporter

This brings first half global net inflows to 734t ($39.5bn), substantially above the highest level of annual inflows, both in tonnage terms (646t in 2009) and US-dollar value ($23bn in 2016).
 
To put this strength of demand into context, first-half inflows are also substantially higher than the multi-decade record level of central bank net purchases seen in 2018 and 2019, and could absorb a comparable amount of about 45% of global gold production in first half of 2020.
 
In terms of regional flows:
 
• North American funds had inflows of 83t ($4.6 billion, 4.3% AUM).
 
• Holdings in European funds increased by 18t ($745.7 million, 0.8%).
 
• Funds listed in Asia saw holdings rose marginally by 0.4t ($36.7 billion, 0.6%).
 
• Other regions had inflows of 3t ($150.1 million, 4.4%).
 
Over the first six months of 2020, global gold ETF holdings (in tonnage terms) have increased by 25%; holdings in both tonnage and value terms continue to reach new highs; and North American and European funds now account for 52% and 43% of global tonnage holdings respectively.
 
"The market shares from these two regions have been diverging since late March," the World Gold Council said.

 

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