Featured Report
Gold investment market and financialisation: India gold market series
India is one of the world’s largest gold bar and coin markets. Investment demand for gold is driven by its safe-haven appeal and the ability to convert these products into jewellery at a later stage.
Outflows result in H1 disinvestment
Global gold ETFs experienced net outflows of US$3.7bn (56t) in June, calling a halt to their three-month inflow streak. June’s outflow caused global gold ETF demand during H1 2023 to turn negative, leaving collective holdings of global gold ETFs at US$211bn (3,422t).
Gold Mid-year Outlook 2023: Between a soft and a hard place
Developed market central banks are nearing the end of their tightening cycles.1 For now, market consensus points to a mild contraction in the US in late 2023 and slow growth in developed markets.
Gold ETF commentary: May inflows turn y-t-d gold ETF demand positive
Global gold ETFs saw the third consecutive monthly inflow of US$1.7bn, primarily driven by the gold price strength in early May and uncertainties around the US debt ceiling negotiations. May took y-t-d global gold ETF flows to positive territory at US$1bn, led by North American funds.
Recession concerns sustain gold ETF inflows in April
Global gold ETFs continued to see positive demand in April: net inflows totalled US$824mn while holdings increased 15t. North American funds led global inflows, adding nearly US$1bn. Fund flows in Europe turned negative again in the month (-US$223mn), led by Germany.
Gold Demand Trends Q1 2023
Continued momentum in central bank buying and resurgent Chinese consumer demand contrasted with a negative contribution from ETFs and weakness in India.
The banking crisis fuelled gold ETF inflows in March
Global physically backed gold ETFs saw net inflows of US$1.9bn in March - the first inflows for ten months - as the banking crisis fuelled demand. But the recent inflows were not enough to prevent a net quarterly outflow of US$1.5bn. Regionally, European funds accounted for the bulk of the global outflows in Q1.
The relevance of gold for Australian investors in 2023
Gold, in Australian dollars (AUD), delivered positive returns in 2022 and so far in 2023. And it has attracted attention: while global central banks bought a record level of gold in 2022, Australia’s sovereign wealth fund also added gold to its portfolio.
Gold ETF outflows continued in February amid weak gold prices
Global physical gold ETFs saw another outflow of US$1.7bn (-34t, 1.0%), their tenth consecutive monthly loss. Outflows were widespread, with the exception of funds in the Other region.
Gold Market Commentary
A falling US dollar was a significant contributor to gold’s 6.1% return in January and another positive ‘unexplained’ factor could be continued central bank buying or expectations thereof. Gold futures have also helped support the rally and, looking forward, we expect North American gold ETFs to continue seeing positive demand in coming weeks as historical analysis shows that positioning in futures tends to lead ETFs flows by two weeks.
