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Informist, Friday, May 9, 2025

 

MUMBAI – Global gold exchange-traded funds saw inflows for the fifth consecutive month in April, led by in inflows Asia and North America, with assets rising by 115.3 tonnes from a month ago to 3,560.8 tonnes, the World Gold Council said in a report. The strongest inflow since March 2022 and the continued surge in gold prices lifted assets under management of global gold exchange-traded funds to $379 billion in April, representing an increase of 10% from March.

 

"Global physically backed gold exchange-traded funds added $11 billion in April, extending their inflow streak to five months, because of higher gold price and continued inflows," the WGC said.

 

In April, gold exchange-traded funds in Europe, primarily in the UK, saw a modest outflow of $807 million or 0.7 tonne, which were partially offset by inflows into gold ETFs in Switzerland and France. "Gold price declined in late April sparked investor selling, likely profit-taking, erasing earlier gains. Sharp stock market rebounds may have further reduced gold's appeal," the report said.

 

Asian gold exchange-traded funds saw inflows of 69.6 tonnes, or $7.3 billion, in April, the strongest month on record. "The bulk of the demand came from China, marking the third consecutive month of inflows and the strongest on record for the region," WGC said.

 

The inflows in April surpassed those in Jan-Mar and in full year 2024. The continued rise in gold prices and demand in China was driven by ongoing trade dispute with the US, which raised fears of weaker growth, amplified equity volatility, and intensified expectations of depreciation of the yuan, the report said.

 

Indian gold exchange-traded funds saw an inflow of 1.7 tonnes in April, after an outflow in March. The total assets under management in the country rose to 65.6 tonnes in April from 63.9 tonnes in March. ICICI Prudential Gold iWIN ETF saw an outflow of 100 kilograms, or $11.7 million, in April. The fund was placed fourteenth globally in terms of fund outflows.

 

North American funds saw an inflow of 44.2 tonnes, or $4.5 billion in April, the report said. Though the flows were lower than February and March, last month marked the second strongest on record for inflows in April, the WGC said.

 

"Net cumulative flows through the first four months of the year have already outpaced 2020's historical performance," the WGC said.

 

Gold holdings with SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose by 10.9 tonnes to 944 tonnes in April. The second-largest gold-backed exchange-traded fund, iShares Gold Trust, saw an inflow of 12.4 tonnes, with its holdings at 437.2 tonnes.

 

The daily average trading volume across all gold markets rose 48% on month to $441 billion in April, as all markets witnessed significant month-on-month rise in trading activities. Total net long positions on the COMEX fell by 30% on month to 566 tonnes as at April-end, with net long positions of money managers falling by 245 tonnes from March to 360 tonnes.

 

At 1435 IST, the June contract of gold on the COMEX was at $3,330.80 per ounce, up 0.8% from Thursday's close. End

 

US$1 = INR 85.54

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

 

Reported by Sandeep Sinha

Edited by Ashish Shirke

 

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