Global gold-backed ETF holdings added 15 tonnes to 2,484t in May, according to World Gold Council (WGC). Europe and Asia drove inflows as European funds have responded strongly in the past two months. North American fund flows reversed their early 2018 trend as they lost 2.3 per cent of assets, likely a result of the volatile prices in the gold market which left gold lower by 60bps (in dollar terms) on the month.
According to WGC,European inflows have caught North American inflows on the year, while Asian funds have grown 20 per cent, led by Bosera Gold ETF which has grown 114 per cent.Gold price volatility has been inversely correlated with North American flows.
After strong early-year performance, gold has given back much of its gains, remaining largely flat on the year, despite the USD rallying over 4 per cent in the second quarter
The report says that North American funds lost 30 tonnes (US$1.2bn, 2.3 per cent of AUM). European funds saw solid net inflows in May, growing by 26 tonnes (US$1.2bn, 2.8 per cent ).Total fund holdings in Asia rose by 21 tonnes ($862mn) growing assets by 20 per cent. Funds in other regions lost 2 tonnes or 6 per cent of assets.
SDPR Gold Shares was the main driver of US and North American outflows losing 24 tonnes (US$1bn, 2.7 per cent), while iShares Gold Trust also lost 2t (US$100mn, 80bp).Inflows in Europe were once again led by Xtrackers Physical Gold (23 tonnes, 74 per cent) in Germany and Invesco Physical Gold (4t, 3.5 per cent) in the UK. Bosera Gold ETF, in China, continues to grow at a rapid pace adding 20t (US$822mn, 83 per cent) driven by a combination of bottom-fishing and transfers from other non-listed Bosera funds Huaan Yifu also added other non-listed Bosera funds Huaan Yifu also added (1 tonnes, 5 per cent)
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