Global Gold-backed ETF flows are now positive in 2018


LONDON (Scrap Register): Holdings in global gold-backed ETFs and similar products rose in November by 21.2 tons (t) to 2,365t, equivalent to US$804mn in inflows. This marks the second consecutive month of net inflows, according to World Gold Council.

Global gold-backed ETF flows are now positive in US dollar terms on the year. Global stock markets remained volatile, although they ultimately ended the month mixed. Oil performance was a major story as the commodity fell more than 22% on the month amidst supply concerns.

The US 2/10 Treasury yield curve flattened to near-low prices on the year as investors have become concerned that the US has hit peak economic conditions with the potential for a recession in either 2019 or 2020.

Long-dollar hedged goldis now higher on the year and has rallied over 6% in Q3 with the improving gold and US dollar pricing. Flows were positive across all regions in November. European funds led global inflows, with strong flows into UK-based funds as Brexit concerns increased and sterling weakened.

Collectively, US dollar flows in gold-backed ETFs are now positive havingraised US$354mn (40bps), despite the recent trend driven by a strong USdollar and bearish gold market sentiment.

North America reported a second monthly inflow after six consecutive months of outflows but remain negative on the year by 50.0t (US$2.1bn, 4.6% AUM).

By contrast, European funds continue to see net positive inflows with $2.9bn coming in (7.1% AUM) y-t-d.

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