ETFs
Global gold ETFs saw first inflows in a year in May, WGC says
Global gold exchange-traded funds (ETFs) backed by physical assets attracted their first inflows in May after a year, thanks to the addition of securities by funds listed in Europe and Asia, the World Gold Council (WGC).
Safe-haven demand, driven by geopolitical and economic uncertainty, as well as persistent central bank buying contributed to a rally in gold from March to May, pushing spot prices to a record high of 2,449 .89 dollars per ounce on May 20.
Gold ETFs, which store bullion for investors and are a major category of investment demand for the precious metal, saw an inflow of 8.2 tonnes, or $529 million, in May, said the WGC, an industry body whose members are global gold mining companies. in a research note.
Rising gold prices and capital inflows pushed total assets under management up 2% to $234 billion, the highest since April 2022, the report added.
Their collective reserves rebounded to 3,088 tonnes in May, but remain 8.2% below the 2023 average.
Gold ETFs have seen three consecutive years of outflows, with a decline of 244.4 tonnes in 2023 amid high global interest rates.
(By Polina Devitt; editing by Sriraj Kalluvila)
Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. This is not a solicitation to trade any commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no liability for loss and/or damage arising from the use of this publication.