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World Gold Council: global gold ETF demand rose to a six-year high in July

Thu Aug 08 2019


According to the latest report from the World Gold Council (WGC), the surge in market uncertainty is pushing investors into ETF, a product traded on the gold exchange at an unprecedented rate, to a six-year high in July, KITCO Gold said in a report released on Thursday.


On Thursday, the World Gold Council said global gold ETF and similar products had a net inflow of $2.6 billion last month, an increase of 52 tons to 2600 tons, the highest level since March 2013. "the traffic last month continued the positive trend that began in mid-May as uncertainty rose, whether it was economic issues, trade tensions or geopolitical risks, and global monetary policy began to shift to a looser position," the report said. "


Not only did investors jump into the gold market, but they did so in a strong dollar environment, the committee said. The dollar index rose 2.5% last month to a one-year high.


WGC said North American investors dominated the ETF market, adding 43 tons last month. The two largest ETF SPDR Gold Shares and iShares Gold Trust account for 75 per cent of global net inflows. At the same time, European-listed funds grew by 7.5 tons and inflows spread across the countries of the region.


The World Gold Council says it expects European demand to continue to maintain a positive growth trend. "concerns about Brexit, usually weak currencies, negative interest rates and other special risks, have underpinned demand for gold investment," WGC said. " About a tonne of capital has also been inflows in Asia and elsewhere, according to WGC.