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Global gold flows stable in October; gold-backed ETFs add 3

Global gold flows stable in October; gold-backed ETFs add 3.3t of yellow metal

Tue Nov 14 2017


Gold-backed exchange traded funds (ETFs) have added 3.3 t of gold to their global holdings during October, as outflows from North America mostly offset inflows in Europe, the latest data from the World Gold Council (WGC) shows.


Global ETF gold holdings now total 2 347.6 t.


According to the WGC, Europe led inflows in October, as investors added 11.2 t of gold through funds listed in the region. There were outflows in North America of 8 t, reversing some of its September gains. Asia funds gained 800 kg, and ETFs in other regions lost 700 kg.


The combined liquidity of gold ETFs increased modestly month-over-month to $1.37-billion a day, an increase of 6% when compared with the year-to-date average liquidity of $1.29-billion a day, the WGC found.


In Europe, iShares Physical Gold ETC added 4.1 t of gold to its holdings, increasing its assets under management (AUM) by 5.8%. ETFS Physical Gold added 4.1 t, adding 2.9% AUM). ETFS EUR Hedged Physical Gold added 1.9 t, increasing their AUM by over 50%, and ETFS GBP Daily Hedged Physical Gold added 700 kg, increasing their AUM by 23%, both on the back of a stronger US dollar.


In North America, iShares Gold Trust added 5.8 t, or 2.55% to its AUM, while SPDR Long Dollar Gold Trust increased holdings by 8%. SPDR Gold Shares led outflows globally and in North America with 13.9 t coming out of the fund.


So far this year, global gold-backed ETFs collectively held 2 347.6 t at the end of October. Funds added 182.2 t of gold year-to-date, equivalent to $7.8-billion, which represents an increase of 8% of the global AUM from December 2016, the WGC advised.


European funds continue to lead inflows, accounting for nearly 70% of all inflows at 127.4 t, or 12.8% of AUM in 2017. North America inflows are 67.4 t on the year, while Asia saw outflows of 13.5 t during the year.


German-based ETFs Xetra-Gold and db Physical Euro Hedged ETC account for 32% of net inflows year-to-date, with Xetra-Gold alone accumulating 55.1 t year-to-date – a 49% increase over the period. The US-listed funds accumulated a combined 66.6 t, or 37% of gross global inflows.


The WGC's recent ‘Gold Demand Trends’ report for the third quarter showed a 9% year-on-year decline in gold demand to 915 t, the lowest level since the third quarter of 2009.