Gold ETF Holdings at Best Level Since May 2021:WGC


Global investment fund holdings of gold-backed ETFs in January 2022 were 46.3 tons, their best level since May 2021 when 57.5 tons were recorded, after seven months of weak results, in which funds they sold their reserves due to the volatility of the price of the precious metal in the international market.

According to an analysis by the World Gold Council (WGC for its acronym in English) inflows of gold-backed funds in North America and Europe exceeded outflows from Asia, leaving a net result of 46.3 tons.

North American funds bought 49 tons of gold through ETFs, equivalent to 2.9 billion dollars, while European funds had inflows of 6.7 tons or 385 million dollars. Meanwhile, the funds listed in Asia registered 9.9 tons sold that is 589 million dollars in gold ETFs. Other regions had modest receipts of 0.5 tons or 27 million dollars.

Gold-backed ETFs are funds traded in gold. A security that is backed by gold is worth the same as the precious metal, even if you don’t have the physical metal.

According to the WGC, gold ETFs saw global outflows of $9.1 billion or 173 tons last year, as large North American funds lost assets in line with lower gold prices, while low-cost and all other regions remained mostly positive.

On the contrary, this year has been marked by inflows into large US funds, as well as growth in European ETFs.

Until this Friday, the price of gold was 1,899.80 dollars per ounce, maintaining stability in its value this year with a gain of 3.76 percent. In the last 12 months it has risen 6.31 percent.

Ana Azuara, Raw Materials analyst at Banco Base, said that “going forward, volatility in gold is expected in the face of economic risks, the spread of the coronavirus, the threat to global economic recovery and concerns about geopolitical risks. Likewise, speculations about global monetary policy, mainly from the Fed, will continue.

The price of gold remains high compared to pre-pandemic levels, with an increase of 41.03% compared to December 31, 2018, when it was at 1,347.10 dollars per ounce. (With information from Agencies)

[email protected]



Leave a Comment