Global gold-backed ETF holdings grew incrementally in March

Holdings in global gold-backed ETFs and similar products rose slightly in March by 2 tonnes(t) to 2,481t, equivalent to US$120mn in inflows. Global assets under management (AUM) fell by 1.7% in US dollars to US$103bn over the month, driven by the 2% decline in the price of gold during the same period. Global gold-backed ETF flows remain positive on the year (US$1.9bn, 1.9% AUM) on the back of strong January inflows.

Global gold-backed ETF holdings retreated in February

<p>After four straight months of inflows, holdings in global gold-backed ETFs and similar products fell in February by 33 tonnes(t) to 2,479t, equivalent to US$1.3bn in outflows. Global assets under management (AUM) fell by 2% in US dollars to US$105bn over the month. However, global gold-backed ETF flows remain positive on the year (US$1.7bn, 2% AUM) on the back of strong inflows in January.</p>

Global gold-backed ETFs continued their strong growth in January

Holdings in global gold-backed ETFs and similar products rose in January by 72 tonnes(t) to 2,513t, equivalent to US$3.1bn in inflows, marking the fourth consecutive month of net inflows. Notably, total holdings have not been this high since March 2013, when the price of gold was 22% higher. Global gold-backed ETF holdings have grown 6% over the past two months, driven by market uncertainty and a shift in sentiment that drove the price of gold 3.5% higher in January alone. Global assets under management (AUM) rose by 6% in US dollars to US$107bn over the month.

Global gold-backed ETF holdings grew 3% in 2018

Holdings in global gold-backed ETFs and similar products rose by 69 tonnes(t) to 2,440t in 2018, equivalent to US$3.4bn of inflows. Global gold-backed ETFs grew 3% in 2018, driven by strong growth in European funds and increased global inflows during December.** This is the first time since 2012 that the value of total gold-backed ETF holdings has finished the year above US$100bn.

Gold Demand Trends Q3 2018 - Video

Gold demand was 964.3t in Q3, just 6.2t higher y-o-y. Robust central bank buying and a 13% rise in consumer demand offset large ETF outflows. Alistair Hewitt explains the findings of our latest Gold Demand Trends report.

Gold mid-year outlook 2018

Gold rose by more than 4% in the first few months of 2018, only to finish June down by the same amount. Gold’s price momentum and investor positioning in derivatives markets accelerated this descent, but we believe that there may be reasons to be optimistic. Key macroeconomic trends developing in the second half of 2018 may spur investor demand and opportunistic buying.