Featured Report
Investment Update: Why should Japanese investors own gold?
While major Japanese and global assets have witnessed declines in H1, gold has delivered a 19% return in local currency amid a combination of rising inflation, geopolitical risks and a weaker yen.
Gold ETF demand strong year-to-date despite outflows in June
Global gold ETFs registered 28t (US$1.7bn) of outflows in June. This was the second consecutive month of outflows, following the 53t (US$3.1bn) that left these funds in May. While the recent flows were enough to push Q2 into net outflows of 39t (US$2bn), year-to-date net inflows remained positive at 234t (US$14.8bn). Total holdings at the end of June stood at 3,792t (US$221.7bn), up 6% y-t-d.
May outflows from gold ETFs partially reverse recent gains
Global gold ETFs ended their four-month run of positive inflows in May, with outflows of 53t (US$3.1bn). While this was the largest monthly outflow since March 2021, total holdings remain 8% higher year-to-date at 3,823t (US$226bn).
Gold ETF inflows slowed but remained healthy in April
Global gold ETFs registered healthy net inflows of 43t (US$3bn) in April. While this is 77% lower than the previous month, which was the strongest since February 2016, it is the fourth consecutive month of inflows, maintaining the momentum of flight-to-quality flows we have witnessed this year.
Gold Market Commentary
Throughout April, gold remained among the best performing assets in 2022 up 5% in US dollar terms – yet it ended the month 1.6% lower at US$1,911/oz.
The Case for Gold in DC Asset Allocations
The traditional Defined Contribution (DC) investment portfolio made up of equities and bonds has worked well for investors for a long time. For much of the last 15 years, the environment that has afforded this success has been driven by central bank actions such as ultra-low interest rates and quantitative easing.
Why should gold be included in an Australian super fund's portfolio?
Geopolitical uncertainty, inflationary concerns and rising interest rates in key markets have impacted global financial markets in the first quarter.
Gold ETF assets surge to near record highs in March
Global gold ETFs had net inflows of 187.3t (US$11.8bn, 5.3% of AUM) in March, with assets just below the record of US$240.3bn, set in August 2020. March inflows were the strongest since February 2016, despite a significant rebound in equities and a strong US dollar performance.
Gold ETFs inflows continue in February amid high inflation and geopolitical risk
Global gold ETFs drew net inflows of 35.3t (US$2.1bn, 1.0% of AUM) in February. Positive flows were almost evenly split between North American and European funds, continuing the year-to-date growth in Western markets and considerably outweighing outflows from Asia. Global net inflows were driven by stubbornly high inflation and a surge in geopolitical risk on the back of the Russian invasion of Ukraine, which pushed the gold price to an intra-month high of US$1,936/oz.
Gold Market Commentary
Geopolitical crisis takes centre stage in February
