World Gold Council/Staff/7-8-2022
“On a y-t-d basis, the picture is one of strength, with all regions except Asia having seen inflows. But it was a tale of two halves. Demand for gold ETFs surged in Q1 to 273t – the highest level of quarterly inflows since Q3 2020 – propelled by gold price strength, equity market weakness, rapidly rising inflation expectations, and unexpected geopolitical events. This investment partially reversed in Q2, with outflows of 39t, as interest rate hikes and quantitative tightening came to dominate the narrative. But the fact that only a fraction of the Q1 inflows were unwound is a sign that much of this demand is ‘sticky’, more strategic in nature than tactical in our view.”
USAGOLD note: That stickiness is notable in that ETF demand is dominated by global funds and institutions. It shows that institutional investors still see a need or advantage in holding the yellow metal.
Table and chart courtesy of the World Gold Council • • • Click to enlarge
