Global Gold ETFs: Inflows At $3.4 Billion After Three Months Of Outflows

Institutional and individual investors use gold-backed ETFs and similar products to implement many of their investing strategies, making them a key portion of the gold market.

Flows in exchange-traded funds (ETFs) can reveal short- and long-term attitudes and wishes toward gold.

According to a World Gold Council report, global gold exchange-traded funds (ETFs) saw inflows of $3.4 billion (61.3 tonnes) in May, following three months of outflows, aided by a 7% increase in gold prices.

As of May, gold ETF assets under management (AUM) were 3,628 tonnes, worth $222 billion.

After declining for two months in a row, gold daily trading averages rose significantly in May to $176 billion. This is slightly higher than the 2021 average of $165 billion, but lower than the 2020 average of $183 billion, and more in line with the 2019 average of $146 billion, according to the council.

The council said that gold ETF flows have started to catch up to the price rebound in recent months, adding that Asian gold ETF holdings growth is still above 11% this year, but has slowed in the last two months.

Country-wise Net Inflows

Larger funds in the United States, the United Kingdom, and Germany were once again the key drivers of flows, which shifted to net inflows.

North American funds received 34.5 trillion dollars ($2.1 billion), while European funds received 31.2 trillion dollars ($1.6 billion).

Funds in 'other' geographies lost 1.9 percent of their assets, or $69 million, while Asian-listed funds saw outflows for the second month in a row (approximately $210 million, or 2.7 percent), almost exclusively from China, which had a good stock market performance.