According to the World Gold Council’s Gold ETF Commentary that said, November sees outflows again! The November in review say, Global physically backed gold ETFs1 reported a net loss for the first time in six months, with collective outflows of US$2.1bn in November.
Despite a weaker gold price, North America reported a fifth consecutive – albeit smaller – monthly inflow. All other regions witnessed outflows with Europe once again bearing the brunt of global losses. November’s outflow, along with a lower gold price, brought total global gold ETF assets under management (AUM) down to US$274bn (-4%). Meanwhile, collective holdings fell 29t to 3,215t.
Despite recent losses, y-t-d inflows into global gold ETFs remained positive at US$2.6bn. Over the past eleven months, Asia and North America have driven global inflows while Europe remains the only region with outflows. Y-t-d global gold ETF demand has flipped negative (-11t) again due to the November weakness.
The report also said, Gold trading volumes kept rising! Global gold trading volumes have now risen for three consecutive months, averaging US$290bn in November, 8% higher m/m despite a falling gold price. Higher exchange-traded activities were a main contributor – both futures trading volumes at COMEX (+50%) and Shanghai Futures Exchange (+33%) saw notable gains.
Global gold ETF volumes also jumped, rising 17% to US$3bn/day – with North America driving the growth. Meanwhile, global OTC gold trading saw an 8% m/m fall to US$167bn.
Total net longs of COMEX’s gold futures ended November at 768t, a 15% m/m fall. Money managers reduced their net long positions by 16% to 616t by the end of the month. We believe the gold price weakness and a declining volatility have dimmed their interest in gold futures trading. Meanwhile, continued strength in equities may have also diverted their attention away from gold.
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.
