Global gold ETFs saw first inflows in a year in May, says WGC

6th June 2024

By: Reuters

  

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Global physically backed gold exchange traded funds (ETFs) attracted their first inflows in May after a year, powered by additions to holdings by Europe- and Asia-listed funds, the World Gold Council (WGC) said on Thursday.

Safe-haven demand driven by geopolitical and economic uncertainty, as well as persistent central bank buying contributed to a rally in gold from March to May, taking spot prices XAU= to a record $2 449.89 per ounce on May 20.

Gold ETFs, which store bullion for investors and are a major category of investment demand for the precious metal, saw the inflow of 8.2 metric tons, or $529-million, in May, the WGC, an industry body whose members are global gold miners, said in a research note.

Higher gold prices and inflows drove total assets under management up 2% to $234-billion, the highest since April 2022, it added.

Their collective holdings rebounded to 3 088 tons in May, but were still 8.2% below the 2023 average.

Gold ETFs had three consecutive years of outflows with 244.4 tons of decline in 2023 amid high global interest rates.

Edited by Reuters

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