Recently, World Gold Council [WGC] released their Gold ETF Commentary and said about, Risks channel August inflows West! Global physically backed gold ETFs attracted US$5.5bn in August, extending their inflow streak to three months. Similar to July, North American and European funds led global inflows while Asia and other regions saw mild outflows. Nevertheless, the y-t-d inflow of US$47bn reached the second strongest on record after the peak of 2020.
August inflows and a further rise in the gold price pushed global gold ETFs’ total assets under management (AUM) 5% higher to US$407bn, setting a new month-end record. Holdings continued to increase, rising 53t to 3,692t, the highest month-end value since July 2022 and 6% below the record of 3,929t, which was reached the first week of November 2020.
Asian flows flipped negative in August, losing US$495mn. China lost the most: continued equity strength, with the CSI300 Stock Index jumping 10% in August, kept diverting local investors away from gold. In contrast, India saw its fourth consecutive monthly inflow in August, supported by elevated safe-haven needs amid weak equities as well as ongoing global trade and geopolitical risks.
But they were insufficient to offset Chinese outflows. Flows in other regions remained mildly negative, shedding US$50mn. Australian inflows were insufficient to offset South African outflows in the month.
by focussing on volumes that remained stable. WGC said, gold market trading volumes remained broadly unchanged, averaging US$290bn per day – just 2% lower m/m.5 The minor decline was led by a 17% m/m drop in exchange-traded volumes – trading at both Comex and Shanghai Futures Exchange cooled. Despite this, the average volume of US$114bn/day has remained above its 2024 level of US$102bn/day.
Gold ETF trading volumes were also down across all regions, decreasing 9% m/m to US$4.5bn/day. But OTC trading activities rose, reaching US$171bn/day on average in the month, 12% higher than July and well above the 2024 average of US$128bn/day.
Total net longs in Comex gold futures fell 3.4% during the month, concluding August at 652t, 6 while money manager net longs rose 3.7% to 461t. Money managers’ bullish bets rose steeply in early August around the news of US tariffs on Swiss bullion, leading to a surge in the Comex gold price. Consecutive price rises towards the end of the month also saw gold futures traders build up their longs.
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