World Gold ETFs Posted Robust Inflows: WGC

SEATTLE (Scrap Monster): The latest monthly report published by the World Gold Council (WGC) indicates that global exchange traded funds (ETFs) added 61.3 tonnes during the month of May this year. This follows three straight months of net outflows. The monthly inflows were triggered by several factors including rising investment demand for gold, weaker dollar and renewed inflation fears.

The WGC report said that the global assets under management (AUM) stood at 3,628 tonnes valued at $222 billion. The AUM is only 9% lower when compared with the highs of $240 billion recorded in August last year.

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Region-wise, North American funds witnessed addition of 34.5 tonnes. The European funds saw inflows of 31.2 tonnes. The ETFs in ‘Other’ regions recorded outflows of 1.0 tonnes. The Asian-listed funds reported outflows for second straight month, mainly driven by China. It must be noted that the Asian gold ETF holdings growth has slowed over the past two months, WGC report said.

The inflows to low-cost ETFs continued to remain strong during the month. Xtrackers IE Physical Gold and SPDR Gold MiniShares witnessed inflows of 6.3 tonnes and 1.5 tonnes respectively. The net inflows to low-cost funds totalled 8.3 tonnes, representing 13% of the net global inflows during the month.