Gold ETF investment demand continued in Q3

Goldhub blog

Gold ETF investment demand continued in Q3

Adam Perlaky
Manager of Investment Research
World Gold Council

Posted:

Today, we released the September and Q3 2020 gold ETF flows report as gold ETFs surpass 1,000 tonnes of new demand in 2020.

Highlights include:

10th straight month of inflows, matching the record twice met since the Financial Crisis
 

Gold-backed ETFs (and similar) flows by month*

 

Inflows this year are over 1,000t for the first time ever, as assets continue to make new highs of 3,880t and US$235bn in AUM.

 

YTD 2020 total gold-backed ETF flows 

 

Gold-backed ETFs (and similar) holdings*

 

Q3 inflows were strong and positive in all regions. North America led, but Asian inflows were impressive, up 17% as China continues to list new funds.

 

Q3 2020 total gold-backed ETF flows 

 

Other Highlights:

Strong inflows despite the weakest US dollar gold price performance in four years. Why? The growing acceptance of gold as a long-term strategic asset and increased investment demand amidst the headwinds of tactical, short-term reduced positioning, profit taking and a stronger dollar.

 

Looking ahead: Numerous catalysts for market volatility in the 4th quarter: US election and political posturing, potential no-deal Brexit trade deal, and of course the recent uptick in COVID cases. On the flip side, Chinese economic numbers looked better heading into the holiday season, and the solid monsoon season could spur demand in India as well.

Finally, global monetary policy continues to suggest a longer period of low rates, with the allowance of inflation running hotter for longer. These highlight gold’s improving opportunity cost.

Rate this content: