Gold ETF trading volumes also rocketed

May 10, 2024

1a 1World Gold Council, recently published Gold ETF Commentary, Europe drove outflows in April. According to the report, key takeaways are,

1: Global gold ETFs saw a continuation of monthly outflows, despite early-April inflows spurred by the gold price strength.

2: Asia led global inflows and North American funds registered positive demand; but these were dwarfed by European outflows.

3: End April saw global gold ETF holdings fall to 3,079t, the lowest since February 2020. But the higher gold price in the month extended total AUM by 3% to US$229bn, &

4: Gold ETF trading volumes increased across all regions, with a surge in North America, indicating continued investor interest despite outflows.

The report also highlighted rising trading activities for gold! The average daily trading volume across global gold markets rose by 12% m/m, ending April at US$247bn. Trading volumes at the over-the-counter (OTC) market averaged US$126bn per day, 6% higher than March.

And while traders at the Comex cooled slightly (-8% m/m), average trading volumes at the Shanghai Futures Exchange (+92% m/m) and the Shanghai Gold Exchange (+34%) both jumped. But it is worth noting that volumes in Shanghai remain comparatively smaller than the Comex despite recent surges.

Gold ETF trading volumes also rocketed (+70% m/m), with activities rising across all regions, indicating that investor interest in gold ETFs remains intact, in spite of continued outflows. North American gold ETFs were heavily traded, registering a 66% m/m surge.

Total net longs at Comex rose to 717t by the end of April, a 6% m/m rise. Money manager net longs reached a 45-month-end peak, arriving at 520t. This is 29t higher than March and 66% above the 2023 average (312t), mainly supported by a 4% gold price rise in the month.

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