Bringing you live news and features since 2006 

Gold bars

Gold ETF flows remain stable amid price decline

RELATED TOPICS​

The World Gold Council’s latest report on gold ETFs reveals that gold has experienced significant price declines of 6 per cent during the first half of 2021. However, fund flows remain stabilised due to the North American and Asian fund flows offsetting European outflows. Overall, the drop in global gold ETF AUM is 14 per cent lower than August 2020 highs. 

Global gold ETFs experienced plateauing flows throughout June with slight inflows of 2.9 tonnes. In particular, the low cost of gold ETFs enabled USD222 million to be contributed towards the combined flows of North America and Europe. In reverse, Asian-listed funds observed positive flows in India and China, while fund flows in ‘Other’ regions fell by 0.8 per cent. Overall, the price of gold in June 2021 was 7.2 per cent lower at USD1763/oz. In addition, gold daily trading averages fell to USD163 billion per day compared to USD176bn in May. 

Gold prices managed to rebound throughout the second quarter which were then followed by gold ETFs, mostly led by North American and European funds. Germany represented half of all European inflows at USD1.5 billion. Over the pond in North America, SPDR Gold Shares and SPDR Gold MiniShares led inflows, contributing USD615 million and USD225 million respectively.  Asian funds experienced small outflows of USD92 million in the June quarter which failed to offset the heavy losses experienced in May. 

Looking ahead: “Central banks will likely maintain accommodative monetary policy for some time, keeping opportunity costs of holding gold low”, according to the World Gold Council. Additionally, there may also be a long-term hold over higher inflation rates in developed markets which will reinforce the need for assets like gold. Forecasts must also consider the spread of new Covid-19 variants that may provoke instability in vital markets such as India. 

In conclusion, the council says that central bank demand has been resilient in 2021 and indicates that gold is consistently viewed as a strong hedge in foreign reserves. 

 

Latest News

Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..

Related Articles

Kristen Mierzwa, FTSE Russell
Index Investments Group (IIG), a division within index provider FTSE Russell, has extended its range of indices through two new...
ETFs
US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by