Categories: Business

Gold ETF Inflow touch record high in first half


WGC report on gold

new Delhi. Investments in gold-based exchange-traded funds have reached new heights due to a sharp surge in investment demand for gold due to the epidemic. According to a report released by the World Gold Council, inflows in gold ETFs reached a record high of 734 tonnes during January to June worldwide. Investment in the first 6 months also crossed the 2009 annual record level of 646 tonnes. During this time, there has been a sharp rise in gold prices. During the first half, the price of gold has gone up by 17 per cent. Of this, the price has increased by 10 per cent during the second quarter. Apart from the dollar, gold prices in other major currencies also set record levels.

On the other hand, the impact of the rise in prices was seen on the demand for solid gold and jewelery. There was a sharp decline in investment in gold bars and coins during the first 6 months of the year 2020. During this period, investment fell by 17 per cent to 396.7 tonnes, which is an 11-year low. According to the Council's report, due to the sharp drop in demand in Asian countries, the impact of gold purchases during the epidemic in the West countries ended. According to Counsil, this has also indicated that investors in different parts of the world have reacted differently to the investment in solid gold during the epidemic. At the same time, the demand for jewelery during the first 6 months almost halved to 572 tonnes. Due to the Corona crisis, worldwide recession and sanctions had an impact on demand. The effect was even more widespread during the second quarter, when the demand for jewelery reached a level of 251 tonnes. During this time, banks also did not show any special interest in the purchase of gold. Central banks worldwide bought 39 per cent less gold in the quarter than in the previous year. Whereas purchases by central banks remained highly concentrated. That is, a few banks added gold to their reserves. Some stayed away from it.

This post was published on July 30, 2020 11:57 pm

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