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Informist, Friday, Mar. 7, 2025

MUMBAI – Global gold exchange-traded funds saw net inflows of $9.4 billion in February, with assets rising by 99.9 tonnes from the previous month to 3,353.3 tonnes, the World Gold Council said in a report. This marked the third consecutive month of flows into gold exchange-traded funds. In value terms, assets under gold exchange-traded funds rose to $306.2 billion from $294.2 billion because of rising gold prices, it said.

"North American flows flipped positive following two consecutive monthly outflows, recording one of its strongest months on record. Asian demand was also strong while European inflows narrowed," WGC said.

In February, North American gold ETFs added $6.8 billion, the largest single-month inflow for the region since July 2020 and the strongest for February ever. As physical shipments into COMEX vaults from London and other markets made headlines, the momentum in the gold market also benefited North American gold ETFs. "We believe reduced opportunity costs and a record-shattering gold price were key in attracting inflows," WGC said.

In Asia, gold ETFs saw inflows of $2.3 billion and added 24.4 tonnes as investors bought into gold ETFs aggressively in February. "China led inflows; despite positive equity market sentiment – particularly around AI stocks amid the DeepSeek frenzy – the surging local gold price was attention-grabbing," the council said.

Indian gold exchange traded funds recorded an inflow of 2.3 tonnes, or $220.5 million, in February. The total value of assets under management in the country was $6.2 billion in February. The total assets under management rose to 64.2 tonnes in February from 61.9 tonnes in January. In India, Nippon India ETF Gold BeES saw an inflow of 1.4 kg, or $132.6 million, in February. The fund ranked twelfth globally in terms of fund inflows.

In February, European gold ETFs saw inflows of $150.5 million, led by Switzerland and Germany. "...expectations for continued cuts from the European Central Bank this year have intensified amid the on-course disinflation progress and slower growth. This might have been a key factor underpinning inflows into other European gold ETFs," WGC said. European funds added 2 tonnes of gold during February and their total holdings stood at 1,328.7 tonnes.

Gold holdings with SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose by 39.6 tonnes to 904.1 tonnes in February. The second-largest gold-backed exchange-traded fund, iShares Gold Trust, saw an inflow of 19.4 tonnes, with holdings at 411.2 tonnes.

The daily average trading volume across all gold markets rose around 13.6% on month to nearly $300 billion in February from $264 billion in January. Total net long positions on the COMEX fell 13% on month to 832 tonnes as of the end of February, with net long positions of money managers falling 16% on month to 605 tonnes.

At 1207 IST, gold on the COMEX was at $2,919.2 per ounce, down 0.3% from Thursday's close.  End

US$1 = INR 87.05

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

Reported by Ashutosh Pati

Edited by Avishek Dutta

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