Gold Market Structure and Trends

Global gold ETFs lost 107.5t tonnes (t) (-US$5.9bn, -2.9% AUM) in March, marking outflows for the fourth month out of five and the second month in a row with net outflows cracking the top 10 worst historically. Global assets under management (AUM) stand at 3,574t (US$194.5bn), back to levels last seen in mid to late Q2 2020. Since the peak asset levels in November 2020, gold ETF holdings have fallen nearly 10% in tonnage terms, on par with the approximate loss in the price of gold over the same period.

Global gold ETFs lost 84.7 tonnes (t) (-US$4.6bn, -2.0% AUM) in February, marking outflows for the third time in four months, and the seventh worst historical monthly holdings loss. Global assets under management (AUM) now stand at 3,681t (US$207bn), levels last seen in June 2020, when the price of gold was near the February closing level of US$1,743/oz.

The Indian government’s sustained campaign for improving overall tax compliance through a carrot-and-stick policy was reflected again in the 2021-22 Union Budget, with a few material announcements that impact gold. 

Primarily driven by the COVID-19 pandemic and its far-reaching impacts, China’s gold demand in 2020 declined by 27% compared to 2019, the lowest recorded demand in a decade.

Global gold ETFs saw inflows of 13.8 tonnes (t) (US$1bn, 0.4%) in January, after two consecutive months of outflows in November and December, which had totalled 148.8t. Global assets under management (AUM) now stands at 3,765t (US$226bn), just 4% shy of the intra-month record 3,915.8t (US$244bn) set in early November.

How gold’s role in a portfolio differs from cryptos

Weak Q4 set the seal on an 11-year low for annual 2020 gold demand

2020 has been a memorable year for China’s economy and its gold market.