Global Gold ETF Demand Rises To
Six-Year High In July
August
08, 2019 08:00
Surging
market uncertainty is pushing investors into gold exchange-traded products at
an unprecedented pace with holdings rising to a six-year high in July,
according to the latest report from the World Gold Council (WGC)Thursday, the
WGC said that global gold -backed ETFs and similar products saw $2.6 billion in
net inflows last month as holdings increased by 52 tonnes to 2,600 – a level
not seen since March 2013.
“Last
month’s flows continued the positive trend that had started in mid-May as
uncertainty rose – whether from economic concerns, trade tensions or
geopolitical risks – and global monetary policy started to shift to a more
accommodative stance,” the council said in a press release.Not only did
investors jump into gold, they did it in a strong U.S. dollar environment the
council said; Last month the U.S. dollar index rallied 2.5% to a one-year high.North
American investors dominated the ETF market, increasing holdings by 43 tonnes
last month, the WGC said. The two biggest ETFs SPDR Gold Shares (NYSE: GLD) and
iShares Gold Trust (NYSE: IAU) accounted for 75% of net global inflows.
Meanwhile,
European-listed funds grew by 7.5 tonnes with the inflows spread across
countries in the region. The WGC said that they expect to see European demand
continue its positive growth trend.
“Looming
concerns over Brexit, generally weaker currencies, negative interest rates, as
well as other idiosyncratic risks, have supported gold investment demand,” the
WGC said.Funds in Asia and other regions also had positive flows of
approximately 1t each the WGC said
Source:
https://www.kitco.com/news/
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