Photo by: Bloomberg
VANCOUVER (miningweekly.com) – Global gold-backed exchange-traded funds (ETFs) added 22.5 t of gold during March, increasing their holdings to 2 415 t valued at $102.8-billion, data provided by the World Gold Council (WGC) on Thursday shows.
While the price of gold finished the month relatively flat $1 325/oz, a significant portion of inflows was the result of periods of sharp price rallies past $1 350/oz on strong volume, especially in the second half of March.
Gold’s price performance and volatility were driven by global trade tensions, a weaker US dollar and weak stock market performance, the WGC said, noting that, as stock markets tumbled, investors moved into bonds and gold. Gold is one of the best performing asset classes this year, having rallied 2.5%.
North American funds have accounted for 85% of total net inflows in the year-to-date period. The region dominated global inflows, adding 21.5 t, or 1.7% of assets under management (AUM), valued at $917-million, to their holdings during March.
Asian volumes totalled 3.1 t, or 3.5 of AUM, valued at $141-million. Funds listed in Europe and other regions had muted net flows.
iShares Gold Trust has grown 12% in the year, adding 27.9 t of assets, and together with SPDR Gold Shares were the primary drivers of North American and global inflows accumulating 15.1 t, valued at $642-million, and 5.4 t, valued at $230-million, respectively, during March.
Bosera Gold, in China, continues to dominate Asian flows, adding 1.9 t, valued at $81-million, or 17% AUM, in the month. Gold Bullion Securities, in London, continues to lead European and global outflows losing 1.5 t, valued at $61-million, and which accounts for 1.7% AUM.