Bodily backed gold exchange-traded funds (ETFs) registered a modest internet influx of $3.4-billion in 2024, their first influx in 4 years, regardless that their holdings fell by 6.8-metric tons, the World Gold Council (WGC) mentioned on Wednesday.
Gold ETFs retailer bullion for traders and account for a big quantity of funding demand for the dear metallic, which hit a document excessive of $2 790.15/oz on October 31 and noticed the strongest annual worth progress since 2010 in 2024.
“In a 12 months by which the gold worth reached new all-time highs 40 instances, international investor urge for food for gold ETFs lastly circled,” the WGC, business physique grouping international gold miners, mentioned in a analysis word.
After three consecutive years of outflows in opposition to a backdrop of excessive rates of interest, the modest influx in worth phrases was led by Asia-listed funds and improved urge for food from North American funds as main central banks started their price easing cycles.
Whole belongings below administration at gold ETFs rose by 26% to $270.5-billion in 2024, whereas collective holdings fell by 0.2% to three 218.8 t.
The WGC estimates that gold buying and selling volumes throughout international markets rose by 39% to a mean of $226.3-billion a day in 2024, the best on document, with buying and selling within the over-the-counter (OTC) market including 37%.
