Report: Global gold ETF assets surged to near record highs in March

2022-06-15 0 By

China News Service, Beijing, April 8 (reporter Yan Xiaohong)Global gold exchange-traded funds (ETFs) made a strong comeback in March 2022, with total assets surging to a near record high, according to a report released by the World Gold Council (WGC) on Thursday.In March, global gold ETFs saw net inflows of 187.3 tonnes ($11.8bn, or 5.3% increase in AUM).Global gold ETFs recorded their strongest monthly inflows since February 2016, despite a sharp rally in equities in March.Positive inflows were seen across all regions this month, but were dominated by North American and European gold ETFs.Global inflows into gold ETFs in the first quarter reached 268 tons ($17 billion), the highest since the third quarter of 2020, as investment demand surged in March.Gold rose to $2,069 an ounce on March 8, within touching distance of its all-time high, driven by fears of stagflation as the conflict between Russia and Ukraine and related sanctions intensified, the World Gold Council said.Gold retreated as geopolitical tensions eased, but still ended the month at $1,942 an ounce, up 1.7 per cent from the previous month and 7.6 per cent from the previous quarter.European gold ETFs saw inflows of 82.7 tonnes.Although UK funds are relatively small globally, accounting for only 20 per cent of global assets under management, they accounted for 38 per cent of global inflows.French and Irish funds are smaller but have grown significantly, up 11 per cent and 12 per cent respectively.Inflation figures continue to be higher than expected and this week German retailers announced across-the-board food price increases of 20-50 per cent.As European currencies have fallen against the dollar in recent months, gold’s reputation as a recognised hedge against inflation and a hedge against inflation has come to the front.Asian funds increased their holdings by 2.6 tonnes in March 2022, recording inflows for the first time this year, but are still down 10.5% year-to-date.Chinese funds have dominated Asian gold ETF flows this month and this quarter;While yen gold prices hit a record high, rising more than 13 per cent, there were few ETF inflows into Japan.In March, other regional funds increased their holdings by 1.4 tonnes.In addition, average daily gold trading volume surged to $170 billion in March, well above February’s $139 billion and the 2021 average of $130 billion.In March 2022, all regions of the world saw inflows of gold ETFs;Asia was the only region to see outflows in the first quarter.Source: