Global gold ETFs lost 114t in Q1 –total holdings declined 4% to 3,113t. Outflows measured US$6bn during the quarter, but accounting for the 8% Q1 price gain, total AUM rose 4% to US$222bn. A monthly breakdown shows that outflows slowed markedly, with March seeing a far smaller decline than January or February.
At a regional level, US- and European-listed ETFs both saw a 4% fall in holdings.
In volume terms, North America saw the largest tonnage decline – a function of this being the region with the largest and most liquid funds. The 68t decline in holdings was concentrated in January and February, whereas March witnessed a slight reversal, with modest monthly inflows of US$360mn (+5t).
For much of the quarter investors seemed to focus on the resilience of the US labour market and hotter-than-expected inflation prints, which pushed rate cut expectations further out. Equity market strength further diverted investor attention away from gold.
The mid-March turnaround was a reaction to the gold price rally, which triggered activity in the options market and sparked sizable inflows in the closing weeks of the quarter. A fall in both the dollar and Treasury yields early in the month helped spur the inflows, as did comments by the Federal Reserve that a strong labour market, by itself, would not be a reason to hold off on rate cuts.
US funds have seen only tentative inflows early in Q2, suggesting that the gold price rally has discouraged further significant outflows for now.
Offical Facebook account of heerazhaveraat.com, homepage for Trade News, Articles and Promotion of D
Celebrate Mother’s day with Zen Diamond’s Toren Collection: Where celebration meets contemporary design
Read more: https://heerazhaveraat.com/celebrate-mothers-day-with-zen-diamonds-toren-collection/
#hzinternational #heerazhveraat #zendiamonds #motherday
Heera Zhaveraat (HZ International) A Diamond, Watch and Jewellery Trade Promotion Magazine provide dealers and manufactures with the key analytical information they need to succeed in the luxury industry. Pricing, availability and market information in the Magazine provides a critical edge.
