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Gold ETFs surge more than 100 t in August as havens in vogue

Gold ETFs surge more than 100 t in August as havens in vogue

Photo by Bloomberg

2nd September 2019

By: Bloomberg

  

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SINGAPORE – Investors are going for gold in a big way. Inflows into bullion-backed exchange-traded funds topped 100 t in August to hit the highest since February 2013 as the trade war worsened, risk assets took a knock, and central banks signaled looser monetary policy.

Holdings rose 101.9 t, bringing total known assets to 2 453.4 t as of Friday, according to data compiled by Bloomberg. It was the third straight monthly increase after the addition of a combined 154.1 t in June and July.

Bullion’s been on a tear, gaining 19% this year, as the global outlook worsened on the stand-off between the US and China. Central bank-buying has provided another layer of support, and Goldman Sachs Group says prices are likely to advance further as official purchases continue and demand for ETFs rises.

Spot gold traded at $1 526.34 an ounce on Monday, according to Bloomberg generic pricing. The metal hit $1 555.07 on Aug. 26, the highest since 2013.

Edited by Bloomberg

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