Global Gold ETFs Witnessed Net Outflows in 2022

SEATTLE (Scrap Monster): The latest report published by the World Gold Council (WGC) suggests that global gold ETFs witnessed net outflows during the previous year.

The physically-backed gold ETFs recorded outflows of 110t valued at $3.2 billion during 2022. The demand had surged during the initial four months of the previous year, aided by rising geopolitical risks. However, the aggressive rate hakes triggered outflows during the rest of the year. The global gold ETF assets under management stood at 3,473t as at end-20222.

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The WGC report noted that the holdings in North American funds registered a decline by 75t, with large-cap funds SPDR Gold Shares and iShares Gold Trust leading the outflows. The demand witnessed a decline by 15t in Europe. The Asian funds posted negative demand of 21t. The holdings in Chinese funds saw significant decline, whereas the Japanese and Indian funds saw boosted demand.

The global gold ETF holdings declined by 4t in the month of December 2022, registering eight straight month of negative demand.

Going forward, WGC expects the performance of gold in the next twelve months to be similar to that of 2022, though with a positive bias. It also predicts highly uncertain outlook for the yellow metal, thus leaving possibilities of more extreme outcomes.