Over US$1bn Gold ETFs includes India!

According to the latest, Gold ETF commentary, reported by the World Gold Council for the Year-to-date (y-t-d) where growing factor is India that pushes gold ETFs to the positive result in the global dais. November pushed y-t-d outflows from global gold ETFs towards US$14bn, with European funds contributing the most.

North America also saw heavy losses, while Asia remains the only region experiencing inflows. In North America, surging Treasury yields between June and October drove outflows of US$9bn during that period, which outweighed inflows of US$4bn during the rest of the year.

And during the past 11 months, European funds’ outflows piled up to US$9bn, the worst of all regions, also driven by rising interest rates in Europe, which diverted investors’ attention away from gold. Germany and the UK led the region’s y-t-d outflows.

Asia remains the only region experiencing y-t-d inflows (+US$1bn), thanks to China, Japan and India. Accumulated outflows from the other region reached -US$103mn y-t-d: inflows into Turkey were outweighed by outflows elsewhere.

Long-term trends are,

1: So far in 2023, collective holdings of global gold ETFs lost 235t to 3,236t, 17% lower than the all-time month-end high recorded in October 2020 (3,916t).

2: By the end of November, European funds have lost US$9bn so far in 2023, the region’s second worst y-t-d performance in history.

3: In November, low-cost gold ETFs registered their sixth consecutive monthly outflow, collectively shedding US$1bn (15t).

4: Y-t-d outflows across global low-cost funds piled up to US$5bn (90t). During the period, low-cost funds in North America saw inflows of US$175mn (2t), while Europe accumulated net outflows of US$6bn (91t). Let’s watch domestic gold ETFs for India further.

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