WGC: Gold ETF Inflows Driven by Recession Fears

SEATTLE (Scrap Monster): The World Gold Council (WGC) noted that gold exchange-traded funds (ETFs) sustained inflows during the month of April this year. The concerns over recession resulted in positive ETF demand during the month.

The net inflows into gold ETFs totalled 15 tonnes, valued at $824 million, during the month. The net gold ETF holdings stood at 3,459 tonnes at the end of April 2023. However, the global gold ETFs recorded negative demand during the initial four-month period of the year, witnessing an outflow of $654 million, primarily on account of heavy outflows from Europe during the first two months of the year.

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All regions except Europe reported inflows. The North American funds attracted inflows of 15 tonnes during the month, with most individual funds reporting inflows. The region reported year-to-date net inflows of $1.8 billion, which is significantly higher than any region.

The gold ETFs in Europe clocked outflows of 0.7 tonnes. The funds in the UK and Germany were the major contributors to the outflow.

The funds listed in Asian region saw modest inflows of 0.1 tonnes. The outflows from Chinese funds were mostly offset by inflows in Japanese and Indian funds. The region posted modest outflow of $35 million during Jan-Apr ’23.

Meantime, the Other Region accounted for an inflow of 1 tonne, which was contributed entirely by Turkey.