Global Gold ETF Holdings Fell by 177.9 Tonnes

SEATTLE (Scrap Monster): The gold exchange traded funds (ETFs) recorded outflows during the initial quarter of the current year, driven by higher interest rates and rising prices. The outflows totalled 177.9 tonnes in Q1 2021. The assets under management (AUM) stood at $194.5 tonnes, falling significantly when compared with $228 billion as at the end of the previous year.

The western funds were the main source of the outflows. Over the quarter, the North American funds lost 145.4 tonnes, valued at $8.1 billion. The European funds too lost 51.7 tonnes during the quarter, led by funds listed in the UK and Switzerland. The Germany-listed funds recorded marginal outflows.

On the other hand, Chinese gold ETFs recorded inflows of 11.5 tonnes, mainly on account of stock market volatility and lower domestic gold price. The holdings in gold ETFs rose to hit new record of 72.4 tonnes, with AUM touching RMB 25.9 billion.

Also, Indian-listed funds witnessed net inflows of 3.5 tonnes, pushing the net holdings to 31.8 tonnes. The AUM hit $1.9 billion- the highest level in almost 32 months. The Gold Demand Trends Q1 2021 report published by the World Gold Council (WGC) noted that inflows into Indian gold-backed ETFs were encouraged by heightened stock market volatility and lower domestic gold price.

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