Gold-Backed ETFs Witnessed Net Outflows in August

SEATTLE (Scrap Monster): The global gold-backed ETFs witnessed net outflows during the month of August this year. The outflows totalled 22.4 tonnes and were valued at $1.3 billion during the month. The global assets under management (AUM) stood at 3,611 tonnes and were valued at $211 billion, said the World Gold Council (WGC).

The brief period of strength in dollar during early-August coupled with rising treasury yields limited the flow into investment portfolios. Gold, which faced headwinds during this period, succumbed to momentum selling during the latter part of the month. Although gold prices recovered, inflows continued to remain weak.

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The outflows from the North American funds outweighed inflows into European and Asian funds. The primary source of outflows during the month was larger U.S. funds. The low-cost ETFs across the globe and larger funds in the UK and Germany recorded the largest inflows. The funds in North America lost 32.2 tonnes, whereas the European funds saw inflows of 9.6 tonnes. The Asian-listed funds witnessed inflows of 0.8 tonnes, in contrast to Other Regions which saw outflows of 0.5 tonnes.

Despite high volatility in gold prices, the low-cost gold ETFs across regions continued to attract inflows. Combined, the low-cost space in North America and Europe accounted for inflows of 1.9 tonnes, WGC report said.