Outflows of North American gold-backed exchange traded funds (ETFs) rose in May, as volatility in the gold market dragged prices lower, the World Gold Council said on Wednesday.
The ETFs lost nearly 30 tonnes worth $1.2 billion, compared with inflows of 43.7 tonnes worth $1.9 billion in April, as the dollar in which gold is priced rose and prospects of higher U.S. interest rates made gold less attractive because the metal does not draw interest.
European gold-backed ETF holdings inflows increased by roughly 26 tonnes worth $1.2 billion, in May, up 2.8 percent from April. This was the second consecutive month of inflows as political turmoil in Italy drove European safe haven demand, the World Gold Council said. (Reporting by Renita D. Young Editing by Susan Thomas)