Gold-backed exchange-traded funds (ETFs) and similar products recorded their ninth consecutive month of inflows in August, albeit at their slowest pace for this year, adding 39 t during the month – equivalent to $2.1-billion, or 0.9%, of assets under management (AUM) as the price of gold reached a record high of $2 067/oz early in August.
The World Gold Council (WGC) reports that, in August, as equities continued to increase to new all-time highs, interest rates rose and yield curves steepened, investor positioning in the gold market consolidated later in the month and the gold price ended the month slightly lower, at $1 957/oz, for the first time in five months.
Year-to-date global net inflows of 938 t ($51.2-billion) have taken collective gold ETF holdings to a fresh new all-time high of 3 824 t, and AUM to $241-billion.
In terms of regional flows, North American funds recorded 41 t, worth $2.5-billion, and AUM of 1.9%. North American funds account for two-thirds of global net inflows in the year.
Holdings in European funds decreased by 0.9% to 11 t ($937-million). Funds listed in Asia saw holdings rise by 6.5%, to 7 t ($459-million).
Other regions saw inflows rise by 2.7%, to 1.9 t ($108-million).
In terms of long-term trends, the WGC points out that over the first eight months of the year, global gold ETF holdings, in tonnes, have increased by 38%, with collective gold ETF AUM having grown by 70% until August.
Further, the WGC says holdings in both tonnage and value terms continue to reach new highs.