WGC: Gold ETFs Posted Net Inflows for the First Time in Ten Months

SEATTLE (Scrap Monster): The World Gold Council (WGC) noted that the banking crisis has fuelled gold ETF inflows during the month of March this year. The ETFs recorded net inflows for the first time in ten months.

The global gold ETFs witnessed net inflows of 32t valued at US$1.9 billion during the month. The inflows were led by European funds. The funds in the region saw positive flows in March following ten consecutive months of outflows. The total assets under management (AUM) of gold ETFs surged by 10%, driven by inflows and the appreciation in gold prices. The total gold holdings stood at 3,444 tonnes at the end of March 2023.

However, the inflows in March were not adequate enough to surpass negative flows during the initial two months of the year. The Q1 witnessed a net outflow of 29t amounting to US$1.5 billion. The Europe funds led the quarterly outflow, losing 400 tonnes, primarily from funds listed in the UK, Germany and Switzerland. The North America and Other Region added 10t and 2t to regional funds during the quarter, while Asia region recorded mild outflows of 1 tonne, said the WGC report.

The global gold market sentiment remained upbeat during the first quarter. The global gold trading volumes surged higher by 34% in Q1 this year, when compared with the prior quarter. All gold markets witnessed improved trading activities during the quarter.