Global gold-backed ETF assets log biggest monthly rise in 7 years
Assets under management among gold-backed exchange-traded funds in June saw their biggest monthly percentage climb since 2012, as prices for the yellow metal touched their highest levels in six years, according to a report from the World Gold Council released Tuesday.
Global assets under management (AUM) rose 15% to $115 billion last month as “all regions experienced inflows,” the report said. North American funds had inflows of 65 metric tons, or $2.9 billion, which accounted for 5% of AUM.
On June 25, futures prices for gold GCQ19, -0.36% settled at $1,418.70 an ounce, which was the highest finish since Aug. 28, 2013. On July 3, it settled at $1,420.90 an ounce, the highest for a most-active contract since May 14, 2013, according to Dow Jones Market Data. The August gold contract finished Monday at $1,400.
“Gold is one of the strongest performing asset classes in 2019, and reached all-time highs in a handful of currencies, most notably the Australian dollar, particularly relevant as Australia ranks second globally amongst countries in gold mining production,” the WGC report said.
Meanwhile, holdings in gold-backed ETFs and similar producers rose by 127 metric tons to 2,548 metric tons, which is equivalent to $5.5 billion in inflows.
“Geopolitical uncertainty increased and central banks signaled a shift to a more accommodative policy over the coming months,” driving interest rates and the U.S. dollar lower and shifting momentum in gold as its price moved to a six-year high,” the WGC said.
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