Bringing you live news and features since 2006 

Bringing you news, views and analysis since 2013
Gold bars

Gold ETF flows remain stable amid price decline

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

We are very pleased to open the voting for service providers (selected by nominations) and ETP issuers, selected by our..
ETF data providers ETFGI report that assets invested in the global ETFs industry extended its lead over the global hedge..
Never a dull moment for Cathie Wood, founder and CEO of ARK Invest. In 2020 she was the ETF darling enjoying..
New data from ETP provider GraniteShares, which offers a range of 3x short and 3x leveraged ETPs on popular UK,..

Related Articles

We are very pleased to open the voting for service providers (selected by nominations) and ETP issuers, selected by our data partners, Trackinsight, for the European ETF Express Awards, in...
Osprey Funds’ founder and CEO, Greg King, has written an open letter to Barry Silbert, majority owner of Digital Currency Group which owns Grayscale, suggesting that he uses his powers...
Comparing multifactor ETFs to the popular Marvel Avengers series may seem a bit of a stretch but recent analysis from Morningstar suggests the investment strategies have more in common with...
Franklin Templeton, with global ETF AUM exceeding USD13 billion, launched its European ETF offering in 2017, and announced last year the hire of Lotfi Ladjemi as Senior ETF Sales Specialist...
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