Outflows continue from gold ETFs in November

Dec 10th, 2022 | By | Category: Commodities

Gold ETFs globally recorded their seventh consecutive month of outflows in November with net redemptions of 34 tonnes ($1.8 billion) during the month, according to data from the World Gold Council.

Outflows continue from gold ETFs in November

The gold price rose 7% in November, supported by falling yields and a weaker US dollar.

Outflows have slowed somewhat in recent months, however, with investors pulling 59 tonnes from gold ETFs in October and 95 tonnes in September.

No region was spared from net outflows during November although North American gold ETFs recorded the largest net redemptions of 21 tonnes ($1.1bn; 1% AUM).

European gold ETFs also recorded significant net outflows, losing 11 tonnes ($614 million; 1% AUM) with UK-based (-6 tonnes) and German-based (-5 tonnes) funds being the main contributors to the region’s decline in AUM.

Net outflows in Asia were far more modest by comparison; the region lost 2 tonnes ($92m; 1.4% AUM), driven primarily by China (-2 tonnes, $99m).

Despite the outflows from gold ETFs, the gold price performed strongly in November, rising 7% month-on-month. According to the World Gold Council, gold was supported by falling yields and a weaker US dollar on mounting speculation that central banks around the world may begin to slow the pace of interest rate hikes.

Year-to-date, gold ETFs globally have recorded net outflows of 83 tonnes ($2.4bn), predominately from North American- and Asian-listed funds. Interestingly, European gold ETFs as a whole remain in net inflow territory (19 tonnes) which the World Gold Council attributes to greater safe-haven demand given the weaker economic outlook for the region.

At the end of November, total assets under management across gold ETFs globally stood at 3,477 tonnes ($196bn).

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