Gold ETFs surge by 31.4 tonnes in August; Europe accounts for 39% of global growth

Gold Exchange Traded Funds (ETFs) in the month of August surged by 31.4 tonnes to 2,295 tonnes in global holding, World Gold Council data showed. 

As per the data, North America led inflows in August, as investors added 27.8 tonnes (+$1.3bn, +2.6% AUM) of gold through funds listed in the region. 

Flows in Europe were mixed with a net increase of 6.4t (+$322mn, +0.78% AUM) over the month. 

Asia funds lost 2.4t (-$80mn, -3.0% AUM), with most of the gold-backed funds losing assets while derivatives demand increased through gold futures markets in the region.

The combined liquidity of gold ETFs rose month-over- month to $1.23bn/day, near its annual average of $1.22bn/day, the data found. 

Moreover, according to the data, Euopean gold ETFs accounted for 79% of the global growth in 2017. Global gold-backed ETFs collectively hold 2,295 tonnes. Gold-backed ETFs have added 143.5t, equivalent to $5.3 billion so far this year. This represents an increase of 5.5% of global asset under management. 

Despite recent resurgence in North American demand, European funds continue to lead inflows (+131t, +$4.8bn, +12% AUM) accounting for nearly 79% of all inflows worldwide on the year. 

North America inflows are +22t (+$860mn, +2% AUM) on the year, while Asia outflows are 10t ($426mn, -16% AUM) on the year. Inflows for ETFs listed in other regions are +1.1t (+$62.9mn) on the year. 

German-based ETFs Xetra-Gold and db Physical Euro Hedged ETC account for 73t or 56% of the gross global inflows. Xetra-Gold itself has grown 48%, accumulating 54t ($2.1bn), the data added.