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July strong month for gold-backed EFTs – World Gold Council

8th August 2019

By: Tasneem Bulbulia

Deputy Editor Online

     

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July was a strong month for gold-backed exchange-traded funds (ETFs) as gold prices surged, continuing the positive trend that started in mid-May, as uncertainty rose owing to trade war escalations and global monetary policy started to shift to a more accommodative stance.

Against this backdrop, gold-backed ETFs added 52 t, increasing their collective gold holdings to 2 600 t in July – a level not seen since March 2013, the World Gold Council says.

On a regional level, all key markets experienced inflows.

European funds rose by 7.5 t, with net inflows spread across countries in the region, amid concerns over Brexit, generally weaker currencies and negative interest rates.

North America dominated July’s flows, adding 43 t, while Asian funds expanded by 0.8 t.

UK-based fund holdings are at all-time highs, reaching 556 t or 21% of global gold-backed ETF assets in July.

Three of the top ten global funds were from the UK, the council reports.

Low-cost gold-backed ETFs continued to grow, accumulating 2.4 t during the month and bringing their joint holdings to an all-time high of 56 t worth $2.6-billion.

Year-to-date, global gold-backed ETFs added 159 t, mostly driven by strong inflows in January, June and July.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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