Gold-backed ETF AUM grew 15% in June, its largest monthly increase in 7 years

Holdings in global gold-backed ETFs and similar products rose sharply in June by 127 tonnes (t) to 2,548t – equivalent to US$5.5bn in inflows – as geopolitical uncertainty increased and central banks signalled a shift to a more accommodative policy over the coming months. This drove rates and the US dollar lower and shifted the momentum in gold as its price moved to a six-year high.

Gold in Islamic finance – The rise of robo-advisers

Wahed is the world’s first automated investing service for the US$2 trillion Shari’ah investment market. Based in the US with a growing international footprint, Wahed gives retail investors access to low-cost, diversified, Halal portfolios. Global Head of Portfolios Samim Abedi explains the inspiration behind Wahed and why gold is such an integral part of its offer.

Gold-backed ETFs experienced small outflows in May

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. 

Global gold-backed ETF holdings fell 2% in April, resulting in net 2019 outflows to date

In April, holdings in global gold-backed ETFs and similar products fell across all regions by 57 tonnes(t) to 2,424t, equivalent to US$2.2bn in outflows. Global assets under management (AUM) in US dollars fell by 3% to US$100bn, as the price of gold of gold fell 1% during the month. Global gold-backed ETFs have now lost assets of US$377mn, 0.4% AUM on the year, reversing January’s strong start.

Gold Demand Trends Q1 2019

Gold demand lifted by central banks and ETFs. This compares with a relatively weak Q1 2018, when demand sank to a three-year low of just 984.2t. Central bank buying continued apace: global gold reserves grew by 145.5t.

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.

Market Update Investor insights: gold in Islamic investment

Following the launch of the AAOIFI Shari’ah Standard on Gold in 2016, we have engaged with Islamic banks and financial institutions to develop the market for Shari’ah-compliant gold-backed products. As part of this we undertook research to understand how investors view Islamic finance, their attitudes towards gold, and preferences for gold-backed products.

Investment Update: The impact of monetary policy on gold

The upcoming Fed meeting could provide clarity into the intermediate-term price behavior of gold. As uncertainty becomes more prevalent in the future behavior of the Federal Reserve, we examine whether there is any correlation with monetary policy uncertainty/behavior and gold prices.