Gold-backed ETF Holdings Hit All-Time High

SEATTLE (Scrap Monster): The latest report published by the World Gold Council (WGC) states that global volatility and uncertainty grove gold-backed ETF holdings and assets to record highs in the month of February this year.

According to WGC, the gold ETFs and similar products added 84.5 tonnes of inflows across all regions. This equates to net monthly inflows of $4.9 billion. The strong monthly inflows drove the net holdings to a new all-time record high of 3,033 tonnes. The assets under management (AUM) surged higher by 4.4% in dollar terms, surpassing the previous highs recorded in September 2012.

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Almost all regions recorded strong inflows during the month. The North American funds added 42 tonnes or $2.3 billion of inflows. European funds added 33 tonnes, whereas the Asian funds reported addition of 8.7 tonnes. The funds in the other regions together accounted for inflows of 0.8 tonnes.

Moving forward, multiple drivers continue to support the demand for gold, said WGC. The all-time low bond rates are likely to have positive impact on gold, thereby offering the opportunity for additional gold exposure. The ongoing market uncertainties could drive inflows into gold investments, the report noted.