Gold ETF inflows catch up to gold price strength

Global gold ETFs added 61.3t tonnes (t) (US$3.4bn, 1.7% AUM) in May, reversing three straight months of net outflows. We believe this to be largely a function of investment demand increasing with the price strength of gold, along with renewed inflation concerns in the market, a weaker dollar and lower real yields. Global assets under management (AUM) stand at 3,628t (US$222bn). AUM is now only 9% shy of the August 2020 high of US$240bn and 7% shy of the October 2020 tonnage high of 3,908t.

Gold ETF outflows continue, but slow with gold price strength

Global gold ETFs lost 18.3t tonnes (t) (-US$1.1bn, -0.5% AUM) in April, marking outflows for five of the past six months. However, global outflows slowed significantly, as European funds added assets for the first time since January. Global assets under management (AUM) stand at 3,567t (US$203.0bn), after slipping below $200bn for the first time in over a year during March. Since the peak asset levels in November 2020, gold ETF AUM has fallen nearly 14%, with 8% coming from outflows and 6% coming from the gold price selloff in US dollar terms.

North American gold ETF funds drove 86% of Q1 net outflows

Global gold ETFs lost 107.5t tonnes (t) (-US$5.9bn, -2.9% AUM) in March, marking outflows for the fourth month out of five and the second month in a row with net outflows cracking the top 10 worst historically. Global assets under management (AUM) stand at 3,574t (US$194.5bn), back to levels last seen in mid to late Q2 2020. Since the peak asset levels in November 2020, gold ETF holdings have fallen nearly 10% in tonnage terms, on par with the approximate loss in the price of gold over the same period.

Gold ETFs lost 2% of holdings in February as gold fell and rates rose

Global gold ETFs lost 84.7 tonnes (t) (-US$4.6bn, -2.0% AUM) in February, marking outflows for the third time in four months, and the seventh worst historical monthly holdings loss. Global assets under management (AUM) now stand at 3,681t (US$207bn), levels last seen in June 2020, when the price of gold was near the February closing level of US$1,743/oz.

Gold ETFs surpass 1,000 tonnes of new demand in 2020

Gold-backed ETFs and similar products (gold ETFs) recorded their tenth consecutive month of net inflows during September, matching equivalent stretches in 2008 and 2016. Gold ETF holdings increased by 68.1 tonnes (t) (US$4.6bn) or 2.0% of assets under management (AUM) despite gold’s worst monthly price performance since November 2016. Global net inflows of 1,003t (US$55.7bn) in 2020 have led overall gold investment demand and taken the gold ETF holdings universe to a fresh new all-time high of 3,880t and US$235bn in AUM.

Appetite for gold ETFs in Asia increased as global demand levels off overall

Gold-backed ETFs and similar products (gold ETFs) recorded their ninth consecutive month of inflows in August, albeit at their slowest pace for 2020. Collectively, gold ETFs added 39 tonnes (t) during the month, equivalent to US$2.2bn or 0.9% of assets under management (AUM) as the price of gold reached a record high of US$2,067 early in August. As equities continued to climb to new all-time highs, interest rates rose and yield curves steepened, investor positioning in the gold market consolidated later in the month and the gold price ended the month slightly lower (-0.38% or US$1,957/oz) for the first time in five months.