Featured Report
The use of gold in institutional portfolios
To better understand how investors are navigating this complex landscape, we partnered with Coalition Greenwich. They interviewed over 400 key decision makers at global investment institutions on their portfolio allocations and views on markets and gold.
India's gold jewellery market structure
India’s gold market is steeped in tradition and still highly fragmented. However, over the last few years the industry has become more organised and regulated.
Gold ETF outflows continue for a fourth straight month on dollar strength
Global gold ETFs registered outflows of 51t (US$2.9bn, 1.4%) in August, in line with price performance. This was the fourth consecutive month of outflows. Funds have now given back two-thirds of the inflows accumulated through April; y-t-d global inflows are 102t (US$7.5bn), with total holdings at 3,651t (US$202bn), up 3.6% on the year.
Investment Update: Gold amid higher inflation and rising bond yields in India
As food and fuel prices in India have risen, inflation has surged: in June, the wholesale price index (WPI) and the consumer price index (CPI) remained elevated at 15.18% and 7.01% respectively. Meanwhile, the 10-year Indian government bond rose by 1% between the end of November 2021 and July 2022.
Strong gold ETF outflows in July, driven by a weaker gold price and momentum
Global gold ETFs registered outflows of 81t (-US$4.5bn) in July. This was the third consecutive month of outflows and the worst since March 2021. A stronger US dollar and COMEX net long positioning – the lowest since April 2019 – helped push the gold price down through the US$1,800/oz support level.
Gold refining and recycling: India gold market series
As India’s demand for gold outpaces its domestic mine supply, demand is fulfilled by imports as well as gold recycled locally. Recycling in India is a Rs440bn industry making up 11% of the average local annual supply.
Gold mining: India gold market series
India has a long history of mining gold, but at a low level: 2020 gold mine production was just 1.6 tonnes. Legacy processes are in part to blame: investment in the sector has been discouraged by unwieldy processes.
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
Gold ETFs bounce back to begin 2022 led by North American funds
Global gold ETFs drew net inflows of 46.3t (US$2.7bn, 1.3% of AUM) in January, led by North American funds – partially offsetting the region’s 2021 outflows. These combined with positive flows from Europe significantly outweighed Asian outflows. Overall, net inflows were driven largely by gold price strength and a sharp selloff in equity markets, despite a reversal in the gold price on the back of a hawkish US Fed statement towards the end of the month.
