Featured Report
Equity yields support gold as investors position for historical September strength
Strong consumer demand recovery and Q2 gold ETF inflows were not enough to offset heavy Q1 outflows.
Gold registered healthy positive returns for the second consecutive month, erasing the losses accumulated during Q1. Gold ended May at US$1,899.95/oz – its highest level since January and back above its 200-day moving average – representing a 7.5% m-o-m increase.
Marking a turnaround from the first three months of the year, gold rebounded 4.5% in April to finish the month at US$1,768/oz - its highest monthly closing level since January and its first positive monthly return since December 2020.
Strengthening consumer demand mitigated the impact of ETF outflows as global economies continued to recover
A sharp rise in US interest rates and a stronger dollar have weighed on gold recently. But a rebound in economic activity and a lower gold price have provided opportunities for consumers and strategic investors alike.
Weak Q4 set the seal on an 11-year low for annual 2020 gold demand
Strong growth in global investment demand for gold in Q3 partly offset weakness elsewhere as COVID-19 remained in the driving seat.
Record H1 inflows into gold-backed ETFs offset weakness in all other sectors of the market, with demand hit by the ongoing global coronavirus pandemic.
Vishal Jain is widely regarded as the founding father of the Indian gold ETF market. Now head of ETFs at the Nippon India Mutual Fund, Jain explains why interest in gold ETFs has soared in India recently and assesses prospects for the market.