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.
India’s gold market update: unprecedented gold price rises, suppressed consumer demand and rising official gold reserves
International and domestic gold prices have risen to unprecedented levels. The price surge has impacted jewellery demand but stimulated investment (bar and coin) demand. Domestic gold prices continues to trade at a discount in relation to the international prices. Meanwhile, the RBI added to its gold reserves in March, inflows into gold ETFs moderated and imports saw a sharp fall.
China’s gold market in March: official gold reserves rose further, wholesale demand fell slightly
In March, China’s official gold holdings rose for the 17th consecutive month and inflows into local gold ETFs continued. Meanwhile, withdrawals from the Shanghai Gold Exchange fell slightly, leading to a lower local gold price premium. Nonetheless, wholesale demand recorded the highest Q1 total since 2019.
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)
India’s gold market update: high prices dent consumer demand
International and domestic gold prices alike touched record high in early March. The price surge presents headwinds for gold demand, even in the face of the ongoing wedding season. Domestic gold prices is trading at a discount in relation to the international prices with demand being crimped by high prices. Meanwhile, the RBI added to its gold reserves in February, inflows into gold ETFs maintained positive momentum and imports saw a sharp rise.
China’s gold market in February: demand steady, gold reserves higher
Wholesale gold demand in China was healthy during February and the local central bank reported its 16th consecutive monthly gold purchase. Meanwhile, Chinese gold ETFs continued to attract investors. Supported by steady demand, the local gold price premium stayed elevated. But gold consumption may cool in coming months due to seasonality and the record-level gold price.
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.
