अब आप न्यूज्ड हिंदी में पढ़ सकते हैं। यहाँ क्लिक करें
Home » IANS » Gold ETFs log record 877 tn inflow in 2020: WGC

Gold ETFs log record 877 tn inflow in 2020: WGC

Published on :

Mumbai, Jan 13 (IANS) Exchange Traded Funds (ETF) backed by gold witnessed a record annual inflow of 877 tonnes in 2020, showed a World Gold Council (WGC) report.

The previous record inflow was reported in 2009 when the inflow stood at 646 tonnes of assets.

“Globally, gold ETFs had record annual net inflows of $47.9bn, or 877 tonnes (t), collectively increasing their gold holdings by over a third, reaching all-time highs in tonnage (3,752t),” it said.

The WGC said that all regions registered significant growth in assets under management (AUM), more than the foreign reserve holdings of any central banks except for the US.

While the ultra-low interest rate environment drove inflows in January and February, the global spread and severity of the Covid-19 pandemic from March onwards boosted interest in gold, it noted.

The heightened risk environment, fiscal and monetary responses to the economic impact of the pandemic, and gold price momentum continued to drive inflows well into second half of the year. The pace of inflows slowed after the gold price hit a new record high, above $2,000 per ounce in early August, before correcting to the $1,900 per ounce level.

Further, the strength in demand for gold ETFs was underscored when compared against other forms of physical gold investment. In response to the pandemic, demand for bars and coins was mixed. As a result, over the first three quarters of 2020, gold ETFs accounted for almost two-thirds of total investment demand, it said.

This is significantly higher than any previous full year. Gold ETF demand was also equivalent to a quarter of the average annual gold mine production over the past five years, said the WGC report.

On the outlook for 2021, it said: “Many of the same drivers of gold demand should continue, such as lower rates and improved opportunity costs, fiscal stimulus, lofty stock valuations, and the economic effects of Covid-19.”



(This story has not been edited by Newsd staff and is auto-generated from a syndicated feed.)
(For more latest news and updates Like us on Facebook, Follow us on Twitter. Download our mobile app )

Latests Posts