Robust ETF Inflows Fuelled Gold Investment Demand

SEATTLE (Scrap Monster): The Gold Demand Trends Report published by the World Gold Council (WGC) states that gold investment demand growth in 2019 was fuelled by strong inflows into gold-backed ETFs. On the other hand, the total investment demand was impacted by weak gold bar and coin demand.

The gold holdings in physically-backed ETFs and similar products ended the previous year at 2,885.5 tonnes. The cumulative annual inflows totalled 401.1 tonnes. The ETF assets under management (AUM) ended the year at $141.1 billion. Bulk of the inflows was fuelled by monetary policy and geopolitics. The momentum of inflows slowed in Q4, as compared with the prior quarter, WGC report said.

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The North American funds added 206 tonnes during the previous year. The holdings in China-listed ETFs witnessed outflow of 4.6t in Q4 last year. However, the total holdings managed to hold on to end-2018 levels.

The bar and coin demand hit decade-low levels in 2019, primarily on account of sharp declines reported by China and India. The full-year demand tumbled to 870.6t, which is the lowest level since 2009. The global bar and coin demand plunged 20%. China and India recorded notable decline, with demand registering fall by 31% and 10% respectively.