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Gold ETFs hit new record holding levels

Global gold-backed exchange-traded funds (ETFs) and similar products saw net inflows of US$3.1 billion during January, boosting holdings to a new high of 2,947 tonnes, the World Gold Council said on Thursday.
Gold ETFs hit new record holding levels Gold ETFs hit new record holding levels Gold ETFs hit new record holding levels Gold ETFs hit new record holding levels Gold ETFs hit new record holding levels

Global gold-backed ETFs saw net inflows during January that boosted holdings to all-time highs

Staff Reporter

Geopolitical tensions and market uncertainty combined with the coronavirus outbreak led to a 5% increase in the gold price in January to seven-year highs of US$1,584/oz and continues to make all-time highs in many global currencies, while assets under management (AUM) grew 8% in US dollar terms during the month.

Gold represented one of the best performing broader asset classes in January (plus 4.6%), and it outpaced global equity markets and commodities.

European funds led regional inflows, adding 33t or $1.7 billion, originating mainly from the UK (21t, $1.1 billion) ahead of Brexit. North American funds added 2% to assets (29t, $1.4 billion), as coronavirus uncertainty drove inflows into safe havens.

Asian funds finished the month relatively flat, losing 1.2t ($57 million), while other regions had marginal inflows of 700kg ($41 million).

The WGC said global gold-backed ETFs assets under management was less than 2% away from the all-time highs of 2012, when the price of gold was 11% higher.

Low-cost gold-backed ETFs in the US have seen positive flows for 19 of the past 20 months and have increased their collective holdings by 220%.