For the fifth consecutive month, investors injected net funds to the ETFs that invest in the precious metal. Asia stands out by China. The current tenure of these funds exceeds 3,500 tons.
The price of gold marked record levels last April after exceeding US $ 3,400 the ounce and in this, in addition, the central banks, much had to see the Gold Golden ETF funds with physical support, which for the fifth consecutive month registered net income, which this time added US $ 11,000 million. In this way, encouraged for a higher gold price and continuous tickets, Total assets under the management of Gold Global ETFs reached a new monthly maximum of US $ 379,000 millionaccording to Bloomberg data, Company Filings, ICE Benchmarking Administration and WGC.
Private estimates realize that last April the holdings increased by 115 tons, to reach 3,561 tons, the highest level since August 2022, although they are still 10% below the monthly maximum of 3,915 tons recorded in October 2020. Who led in April? The data show that Asia led the tickets, representing 65% of the Net Global Total (the strongest month registered), also the US demand was considerablewhile European flows became negative.
Gold: How was the regional panorama?
- Asia recorded record tickets adding US $ 7.3 billion, where most of the demand came from Chinawhich marks the third consecutive month of tickets and the highest registered in the region. However, the most striking thing is that April tickets have already exceeded those of the first quarter and those of all 2024. According to experts, in addition to the continuous increase in the price of local gold, the demand was also driven due to: On the one hand, on the one hand, on the one hand, on the one hand, The commercial dispute with the United States, that has generated fears of weaker growth, has amplified the volatility of the actions and has intensified the expectations of depreciation of the local currency; on the other, the minor yields of sovereign bondsin the midst of growing anticipations of interest rate cuts. It should be noted that global commercial risks and the increase in the price of gold also promoted the demand of FGold Etf Ophs in Japan, registering its seventh consecutive month of ticketswhile India recorded constant positive flows after the net exits of the previous month.
- North American investors continued to buy Gold ETF funds, adding US $ 4,500 million in Apriland while the flows were moderated compared to February and March, last month marked the second strongest registered April. It is worth noting that the accumulated net flows during the first four months of the year have already exceeded the historical performance of 2020. Analysts explain that the impulse of the price of gold, although less pronounced compared to last March, together with the continuous agitation of the financial market in the midst of uncertainties in commercial policy, led to the investors of the region towards the precious metal. In this regard, they warn that the short -term impulse can fluctuate, but the expectations of continuous market volatility (driven by concerns such as future commercial policy and inflation) would provide a level of support for flows in the medium and long term.
- As for Europe, the data shows that there were modest exits of US $ 807 million in Aprilslightly reversing the trend. Capital outputs in the region were mainly concentrated in the United Kingdom, partially compensated by capital entries in Switzerland and France. However, the region experienced a strong demand during most April, thanks to the rebound to the price of gold. For experts, the reduction of opportunity costs, driven by a new rate cut of the European Central Bank (ECB), and the intensification of the expectations of a reduction in the Bank of the Bank of England in early May, promoted the purchase of Golden ETF funds. However, they recognize that the falls of the price of gold at the end of the month caused sales by investors, probably due to profits, which annulled the previous profits. To which the strong rebounds of the stock market that could have further reduced the attractiveness of gold were added. All this redouble in a setback of long positions in the gold futures market. On the other hand, with the strengthening of the local currency against the dollar, the products with exchange coverage, mainly in Switzerland, saw an additional demand, which stopped other outputs.
In relation to the rest, the funds in other regions registered their fifth consecutive month of positive demand (US $ 213 million) highlighting Australia and South Africa that continued to promote gold ETF funds in the region.
Gold: The volumes continued climbing
What happened last April in the world gold market shows that trade volumes continued to climb, reaching a daily average of US $ 441,000 million, which is 48% more compared to March. Amid the strong rebound in gold price, all markets experienced significant monthly increases in commercial activity: the OTC negotiation volume of the LBMA reached the US $ 181,000 million daily (+31% monthly), the operations negotiated in the bags increased by 67% monthly, with the Comex (+42%) and the Shanghai Future Stock Exchange (+122%) at the head. While the volume of negotiation of the Golden ETFs is less than that of other sectors, last April he experienced the largest monthly increase, with an increase of 120%.
Source: Ambito
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