Featured Report
Gold Demand Trends Q2 2024
Gold reached record highs in the second quarter, driven by a combination of continued central bank buying, strong OTC investment and an upturn in Western ETF inflows later in the quarter. Conversely, the high price environment took its toll on jewellery consumption. Total global gold demand, including OTC investment, was 6% higher y/y at 1,258t.
Sustained inflows in June narrowed H1 losses
Global physically backed gold ETFs witnessed their second consecutive monthly inflows, attracting US$1.4bn in June. Inflows were widespread, with all regions seeing positive gains except for North America which experienced mild losses for a second month.
Flows turned positive in May
Physically backed gold ETFs saw their first monthly inflow since last May, amounting to US$529mn. A stronger gold price (+2%) and inflows pushed gold ETFs’ total assets under management (AUM) 2% higher to US$234bn, the highest since April 2022.
Gold Market Commentary: As the buck stops, more bite for gold
Gold posted a third consecutive monthly gain in May, rising by 2% m/m to US$2,348/oz. Despite the more moderate gain compared to March and April, gold hit a new all-time high of US$2,427/oz mid-month before pulling back – likely reflecting some profit taking.
Europe drove outflows in April
Global gold ETFs saw outflows of US$2.2bn in April, further extending aggregate losses to eleven consecutive months. Ultimately, North America (+US$124mn) and Asia (+US$1.5bn) were unable to offset sizable European outflows (-US$3.7bn)
Gold Demand Trends Q1 2024
Central banks continued to buy gold at pace in a quarter that saw the gold price reach a series of record highs. Bar and coin investment was firmer, offsetting continued outflows from ETFs. Inclusive of sizable OTC buying by investors, total gold demand increased 3% y/y to 1,238t – the strongest first quarter since 2016.
Outflows narrowed in March
Global gold ETFs lost US$823mn in March, extending their losing streak to ten months. But outflows narrowed significantly compared to previous months as inflows into North America (+US$360mn) and Asia (+US$217mn) cushioned European losses (-US$1.4bn)
Outflows sustained into February
Global gold ETFs saw their ninth consecutive outflow in February, losing US$2.9bn. North America (-US$2.4bn) bored the brunt of loss, while outflows from European funds (-US$719mn) narrowed. Funds listed in Asia extended their inflow streak to 12 months, adding US$200mn and the Other region experienced limited flow changes.
Gold Market Commentary: Select elections and Fed on a dime
Gold continued its slow start, giving back 0.3% in February on a rise in risk appetite and Treasury yields. But a bounce in early March has seen gold hit a new ATH. A Fed meeting with new dot plots and Iranian parliamentary elections are events to watch in March, with monetary and geopolitical uncertainty high.
Why gold in 2024? Safeguarding investment portfolios
With the soft-landing narrative on the ascendancy, optimism is high within capital markets today. But challenges are on the horizon. As such, we believe that investors should look closely at the portfolio benefits gold can bring.
