Physical Demand Returns: Global Gold ETFs Gain 22.5 Tonnes In March - WGC
(Kitco News) - Global gold-backed exchange-traded funds (ETFs) added 22.5tonnes of gold during March, with the majority of inflows coming from NorthAmerica, the World Gold Council (WGC) reported Thursday.
The inflow in March was a significant increase compared tothe previous month’s net change in holdings, which slipped by 5.1 tonnes.
According to a monthly report on ETF fund flows by the WGC,holdings stood at 2,415 tonnes at the end of the month, worth $102.8 billion.
Worldwide gold holdings of ETFs have been on a steadyuptrend since 2017, mirroring gold’s steady price ascension; the yellow metalgained 16% since the start of 2017.
“Global inflows were dominated by North American-listedfunds which added 21.5t (US$917mn, 1.7% AUM) to their holdings during March,”the report said.
North American funds accounted for 85% of net inflows, with iSharesGold Trust (NYSE: IAU) being the dominant driver.
Inflows in the U.S. and China reflected broad marketuncertainty, the WGC said. The inflows came when President Donald Trumpannounced import tariffs on steel and aluminum, targeting $50 billion worth ofChinese goods.
China’s retaliatory tariffs spiked fears of a global tradewar and briefly spooked the markets, sending he S&P 500 down more than 2.2%Monday, the worst start to April since 1929, before rebounding during Tuesday’sand Wednesday’s sessions.
ETFs in Asia added 3.1 tonnes, growing assets by 13.4%through the first quarter. The region saw holdings bolstered almost entirely byBosera Gold ETF (CH: 159937). The fund has grown 40% on the year, adding 11tonnes, according to the report.
In contrast, Europe was the only major region that saw netoutflows last month, losing 1.1 tonnes in holdings, driven mostly byU.K.-listed Gold Bullion Securities (LSE: GBSS). A stronger pound sterling andhigher certainty surrounding a Brexit deal were to blame, said the WGC.
SPDR Gold Shares (NYSE: GLD) led global inflows in Marchwith 15.1 tonnes in gains, while Gold Bullion Securities led global outflowswith 1.5 tonnes in losses.
By David LinFor Kitco News
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