European flows in to gold ETF's outpaces US investment
February 15, 2021
According to data from the
World Gold Council (WGC), net inflows to global gold-backed exchange-traded
funds (ETFs) amounted to 13.8 tonnes in January.
The impressive figure
brought total global holdings of gold ETFs to 3,765 tonnes, which is equivalent
to around 226 billion U.S. dollars) the end of last month. Holdings of gold
ETFs listed in Europe saw a large increase of 17.5 tonnes in January, while
those listed in North America decreased by 6.3 tonnes.
Since its inception in
2003, gold ETFs and similar products have accounted for a significant part of
the gold market, with growing acceptance among both institutional and
individual investors.
"We believe investment
demand for gold will remain strong in 2021 as investors react to inflation,
global rates, and risk around budget deficits and equity market corrections.
The reverse course we’ve seen in global gold-backed ETFs from consecutive
outflows at the end of 2020 to inflows now in January supports our
view,"said Adam Perlaky, manager of investment research at WGC.
Gold has moved another
0.26% lower in the session. The channel marked by the red trendlines is still
moving to the downside but it will be interesting to see what the yellow metal
does at $1764.73/oz support level should the price reach there. At the moment
the purple horizontal line is the major resistance zone and the price rejected
the area last week. Beyond that, the top of the channel and the yellow level at
$1959.33/oz are the levels to break and if the price does manage to take the
levels out
it could be all the way
back to the all time highs.
Source: https://www.kitco.com/news/2021
|