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Informist, Friday, Dec. 6, 2024

 

MUMBAI – Global gold exchange traded funds saw outflows for the first time in six months, led by European funds, with assets falling by 28.6 tonnes from a month ago to 3,214.9 tonnes in November, the World Gold Council said in a report Thursday. In value terms, the assets under gold exchange traded funds fell $2.1 billion to $274.3 billion in November. 

 

"Despite a weaker gold price, North America reported a fifth consecutive – albeit smaller – monthly inflow," the WGC said. All other regions witnessed outflows, with Europe bearing the brunt of global losses again. 

 

In November, European gold exchange traded funds saw an outflow of $1.9 billion, the third month of outflows in a row, led by Germany, the UK, and Switzerland. "Over the past eleven months, Asia and North America have driven global inflows while Europe remains the only region with outflows, the WGC said. The region's weaker-than-expected macro-economic data, broader concerns around tariffs from the future Trump administration, and the central bank's rate path uncertainty are pushing on flows, it said.

 

Holdings with North American funds witnessed a fifth straight month of inflows, up by 800 kg, or $79.1 million, in November. Despite aggressive risk-on positioning after the US election outcome putting pressure on gold prices, the region still reported inflows mainly due to increased Canadian demand, the report said. "The US faced outflows through the first half of the month, but experienced a rebound of inflows into month-end as the market started pricing in a weaker dollar and lower yields following Scott Bessent’s nomination as US Treasury Secretary," it said.

 

Asian gold exchange traded funds saw outflows of 2.2 tonnes, or $145.2 million, ending the region's 20-month streak of inflows. "China dominated outflows as a notable local gold price drop dimmed investor interest. And the equity market, despite its volatility, continued to divert attention away from gold," WGC said. 

 

Indian gold exchange traded funds recorded an inflow of 1.9 tonnes, or $174.7 million in November. This marked the eighth consecutive month of inflows into the country, driven by rising equity market volatility and general bullish sentiment towards gold, the report said. The total value of assets under management in the country was $5.1 billion in November, unchanged from the previous month. The total assets under management in the country rose to 56.6 tonnes in November from 54.5 tonnes in October. In India, Nippon India ETF Gold BeES saw an inflow of 800 kg, or $73.9 million, in November. The fund ranked fifth globally in terms of fund inflows.

 

Gold holdings with SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell by 13.2 tonnes to 878.3 tonnes in November. The second largest gold-backed exchange-traded fund, iShares Gold Trust, saw an inflow of 12.6 tonnes, with holdings at 392.7 tonnes last month.

 

The daily average trading volume across all gold markets rose 8% on month to $290 billion in November from $268 billion in October. Total net long positions on the COMEX fell 15% on month to 768 tonnes as of November-end, with net long positions of money managers falling 16% on month to 616 tonnes.

 

Daily trading volumes on over-the-counter markets fell 8% on month to $167 billion in November. At 1052 IST, gold on the COMEX was at $2,664.1 per ounce, up 0.6% from Thursday's close.  End

 

US$1 = INR 84.67

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Ashutosh Pati 

Edited by Deepshikha Bhardwaj

 

 

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