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Global exchange-traded funds (ETFs) backed by gold bullion reported their highest monthly inflows for more than three years in April, data from the World Gold Council (WGC) shows.
Ending the month at 3,561 tonnes, total holdings in these gold funds rose by 115 tonnes from March’s levels.
Consequently, holdings reached levels not seen since the pandemic era in October 2020.
The total value of last month’s inflows came in at $11 billion, a figure that helped drive total assets under management (AUMs) to fresh record peaks of $379 billion.
Gold ETF flows.
AUMs also benefitted from yellow metal values reaching new record peaks just north of $3,500 per ounce in April. They have since retraced and were last seen at $3,362.05.
The WGC said that “global gold trading volumes rose significantly across all markets,” noting that “Asia flows surged and North America… saw robust demand, while Europe witnessed mild outflows.”
Asia Records Record Inflows
According to Council data, Asian ETF investment was the chief driver behind April’s inflows, accounting for almost two-thirds (65%) of the worldwide total.
Monthly inflows worth $7.3 billion were the strongest on record, pushing regional AUMs to $35 billion. Physical holdings rose to 320 tonnes, a 70-tonne monthly increase.
The WGC commented that “the bulk of the demand came from China, marking the third consecutive month of inflows and the strongest on record for the region.”
It added that “the ongoing trade dispute with the U.S., which has raised fears of weaker growth, amplified equity volatility, and intensified expectations of the local currency depreciation” also boosted gold demand, as did weaker government bond yields.”
Japanese funds enjoyed their seventh successive monthly inflow, the body said. Indian ETFs also enjoyed positive flows following outflows in March.
Mixed Results Elsewhere
In North America, ETFs printed inflows of 44 tonnes last month, taking total holdings to 1,829 tonnes. These inflows were valued at $4.5 billion, which propelled AUMs to $194 billion.
The WGC said that “although flows moderated compared to February and March, this month marked the second strongest April on record.”
However, Europe-based funds reported modest outflows of around one tonne in April, pulling total holdings down to 1,342 tonnes. This reversed inflows recorded the month before.
April’s outflows totalled $807 million and reduced regional AUMs to $142 billion.
“Outflows for the region were primarily concentrated in the UK, which were partially offset by inflows into Switzerland and France,” the WGC commented.
It added that “the region witnessed healthy demand during most of April as the gold price rallied. Lower opportunity costs, fuelled by another rate cut from the European Central Bank, and intensified expectations of a Bank of England reduction in early May supported gold ETF buying.”
Across the rest of the world, ETF inflows totalled two tonnes in April to raise total holdings to 70 tonnes. AUMs were $7 billion at the end of the month as fund inflows were worth $213 million.
The WGC said that “funds in other regions posted their fifth consecutive month of positive demand,” with Australia and South Africa contributing most to April’s uptick.