Last month was perhaps the strongest for gold net inflows in over a year, according to the World Gold Council. In April alone, global gold-backed exchange traded fund (ETF) holdings added 72.2 tonnes to 2,481. This global growth was led by significant North American and European inflows, as well as a small increase in Asia.
ETF inflows were steady throughout the month even though the gold price retraced early gains, finishing April 1% down, after reaching an intra-day high of approximately $1,360 per oz mid-month.
Global stocks were mostly higher during April, but many indices remained down or flat for the year. Missile strikes in Syria by the United States, the United Kingdom and France, as well continued trade war rhetoric, generated a cloud of market uncertainty.
At the same time, higher inflation expectations and a weaker US dollar through April offset the negative effect of higher interest rates on gold.
A few of the highlights from the report:
- North American and European funds saw solid net inflows in April, growing by 44t (US$1.9bn, 3.4%) and 27t (US$1.2bn, 2.8%), respectively
- Total fund holdings in Asia rose by 2.4t (US$100mn, 3.0%) to 80.2t
- Funds in other regions had a marginal loss of 1t or 3.0% of assets
The World Gold Council listed April’s top five inflows as follows:
- SPDR Gold Shares (NYSEARCA: GLD) has total holdings of 870.9 tonnes and added 3.0%, or 25.1 tonnes, worth almost $1.1 billion.
- iShares Gold Trust (NYSEARCA: IAU) has total holdings of 288.5 tonnes and added 6.4%, or 17.1 tonnes, worth $740.1 million.
- Xtrackers Physical Gold ETC has total holdings of 31.3 tonnes and added 34.5%, or 7.9 tonnes, worth $342.8 million.
- Invesco Physical Gold ETC has total holdings of 120.0 tonnes and added 5.5%. or 6.2 tonnes, worth $268.4 million.
- Xetra-Gold has total holdings of 178.7 tonnes and added 3.1%, or 6.2 tonnes, worth $229.2 million.