Gold-backed ETFs lost 1 per cent of holdings in November following five months of strong inflows

Global gold-backed ETFs and similar products saw USD1.3 billion of net outflows across North America, Europe and Asia in November decreasing their collective gold holdings by 30.1 tonnes(t) after reaching record highs in October.

That’s according to new data released by the World Gold Council which reveals that global gold-backed assets under management (AUM) have grown 35 per cent this year as a result of increased investment demand and price appreciation.

In November, North American funds led regional outflows, losing 17.3t (USD731 million, 1.1 per cent AUM), as the US dollar strengthened and stock markets reached all-time highs on the strongest monthly performance since June. European fund outflows (USD538 million, 0.9 per cent) were driven primarily by UK-based funds, which lost 18.8t (USD871 million, 3.2 per cent) as the Brexit deadline extension prompted a reversal in the protective inflows of October. Asian funds lost 2.1t (USD119 million, 3.1 per cent), a result of outflows in China. Funds in Other regions grew 7.6 per cent with a sharp increase in the holdings of a South African gold-backed ETF.