Gold ETFs Posted Ninth Consecutive Month of Inflows

SEATTLE (Scrap Monster): The gold-backed exchange-traded funds (ETFs) and related products recorded ninth straight month of inflows during August this year, amidst gold prices hitting new highs. The ETFs added 39 tonnes of gold during the month, equivalent to $2.1 billion. The investor interest in gold products saw huge consolidation towards the end of the month, said the report published by the World Gold Council (WGC).

The holdings in tonnage and value terms continued to hit new peaks. The gold ETFs reported global net flows of 938 tonnes, equivalent to $51.2 billion during the year-to-date period, thus taking the global net ETF gold holdings to a fresh new all-time high of 3,824 tonnes. The holdings have surged higher by 38% during the first eight months of 2020, WGC said.

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Region-wise, North American funds recorded largest inflows, adding 41 tonnes. The regional funds accounted for approximately two-thirds of the global net flows so far this year. The funds in Asian region saw holdings rise by 6.5% to 7 tonnes. On the contrary, holdings in European funds saw marginal reduction by 0.9% to 11 tonnes. The collective inflows by other regions rose by 2.7% to 1.9 tonnes.

Meantime, the investment in gold ETFs amounted to INR 908 crores in India during the month of August this year.