Almost as if justifying the decline experienced by the price of gold In November there was the first net loss, in six months, in the global metal ETFs with physical backing, due to a flow of Collective outflows of US$2.1 billion.
According to data from Bloomberg, Company Filings, ICE Benchmark Administration and WGC, despite a weaker gold price, North America reported a fifth consecutive monthly inflowalbeit smaller while all other regions witnessed outflows, with Europe once again bearing the brunt of global losses. The November exit, along with a lower gold price, reduced the total assets under management of gold ETFs globally to $274 billion (-4%). Meanwhile, collective holdings fell 29 tonnes to 3,215 tonnes.
Analysts explain that despite recent losses, capital inflows into global gold ETFs remained positive at $2.6 billion, noting that In the last eleven months, Asia and North America have driven global inflows, while Europe remains the only region with outflows. So far this year global demand for gold ETFs has turned negative again (-11 tonnes) due to weakness in November.
Gold: regional overview
On the one hand, North American funds have witnessed five consecutive months of capital inflows, totaling US$79 million in November. Experts consider that despite the aggressive risk positioning after the result of the US elections, which put pressure on the price of gold, the region still saw capital inflows, mainly due to increased Canadian demand.
The United States was seen facing capital outflows during the first half of the month, but then saw a rebound in capital inflows towards the end of the month as the market began to price in a weaker dollar and lower yields. after the nomination of Scott Bessent as US Secretary of the Treasury. However, experts believe that demand has found a floor of support, due to the expectation of lower yields, the continuation of elevated geopolitical risk and the uncertainty around the implementation of futures policy changes and their global impact under the Trump administration.
Gold: European drainage continues
While on the side of the European funds reported capital outflows, which represents a loss of US$1.9 billion. But once again, capital outflows were seen in all major markets in the region.
Europe faces several challenges that are driving flows, including: weaker-than-expected macroeconomic data; broader concerns around the future Trump administration’s trade tariffs; uncertainty about the path of central bank interest rates; and the behavior of the financial market is changing towards a risk attitude.
Besides, The euro and pound continue to weaken, in line with poor economic data and the fact that the dollar has reached a new high so far this year. Another element worth highlighting that is repeated from the trends observed in previous months is that this dynamic has caused capital outflows related to currency hedging products.
Gold: Asia ends streak
As for Asia, Asian funds lost US$145 million in Novemberending a 20-month streak of capital inflows into the region. China dominated capital outflows, as a notable drop in the price of local gold dampened investor interest.
And the stock market, despite its volatility, continued to draw attention away from gold. However, India’s gold ETFs recorded capital inflows for the eighth consecutive month, attracting $175 million in November, likely driven by rising stock market volatility and overall bullish sentiment towards gold.
Funds from other countries reported capital outflows of US$59 million, breaking the five-month streak of capital inflows into the region, with Australia leading capital outflows amid continued strength in local equities, high yields and a weaker gold price.
Gold: global trade
In relation to global gold trading volumes, they have increased for three consecutive months, with an average of US$290 billion in November, 8% more in monthly terms despite the fall in the price of gold.
The increase in publicly traded activities was an important factor: Both futures trading volumes on the COMEX (+50%) and the Shanghai Futures Exchange (+33%) posted notable gains. Global gold ETF volumes also increased, up 17% to $3 billion a day, with North America driving growth. Meanwhile, global OTC gold trading fell 8% month-on-month to $167 billion.
Source: Ambito
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