In November, global physically backed gold exchange-traded funds (ETFs) experienced a sharp downturn, registering net outflows of USD 2.1 billion. This marked the first monthly decline in six months and the largest single-month outflow since April. The outflows led to a 4% drop in the total assets under management (AUM), which now stand at USD 274 billion.
The World Gold Council revealed that global gold ETF holdings fell by 29 tonnes, bringing the total to 3,215 tonnes. The decline was attributed to waning investor interest, driven largely by falling gold prices during the month. Despite November’s losses, year-to-date (YTD) inflows into global gold ETFs remain in positive territory, totaling USD 2.6 billion, with contributions from Asia and North America.
While Asia and North America showed resilience, Europe struggled throughout the year, reporting consistent outflows. As a result of November’s negative performance, YTD global gold ETF demand saw a slight drop, with a reduction of -11 tonnes.
Asia, however, faced a notable shift in November, with outflows of USD 145 million, ending a 20-month streak of consistent inflows. The primary culprit was China, where declining local gold prices led to decreased investor confidence. On the other hand, India defied the trend, attracting USD 175 million in inflows. This marks the eighth consecutive month of positive investment in gold ETFs in India, with investors turning to gold amid equity market volatility and a bullish outlook on the precious metal.