Global gold ETFs see inflows of $3.4 billion after three months of outflows1 min read . Updated: 08 Jun 2021, 04:50 PM IST
- In India, consumption demand declined as the country battled a vicious second wave of the coronavirus pandemic.
NEW DELHI: Global gold exchange traded funds (ETFs) witnessed inflows worth $3.4 billion (61.3 tonne) in May, after three consecutive months of outflows, helped by a 7% rise in prices of the precious metal, as per a report from World Gold Council.
Assets under management (AUM) of gold ETFs stood at 3,628 tonne, worth $222 billion, as of May.
This is a result of the recent rise in gold prices which have largely been subdued this year, with the year-to-date return of the yellow metal almost flat due to inflation concerns, a weaker US dollar, and low real yields.
Larger funds in the US, UK and Germany were the primary driver of flows, flipping to net inflows. North American funds added 34.5tonnes ($2.1bn, 2.0%). European funds saw inflows of 31.2t ($1.6bn, 1.9%). Funds in 'Other' regions lost 1.9% in assets (-1.0t, -$69mn).
Asian-listed funds saw outflows for a second straight month (-$210mn, -2.7%), stemming entirely from China, which saw a strong rally in its local equity markets. Asia does, however, remain the strongest region in terms of percentage growth this year, having added 11% to holdings, or 13.8 tonne, through the end of May.
In India, consumption demand declined as the country battled a vicious second wave of the coronavirus pandemic.
Meanwhile, global central banks purchases of gold have again gone up.
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