North American funds likely benefited from gold’s strong price performance as the dollar weakened and interest rates stabilized, leading to $572 million (9 tonnes) of net inflows, according to the Council. Positioning in the gold ETF options market may have been another contributor as most inflows occurred around monthly gold ETF options’ expiry date, it adds.
In contrast, European funds saw outflows of $2.1 billion (33 tonnes) in January, extending their losing streak to nine months. Rising rates as European central banks catch up to the Fed, currency appreciation and strong local stock market performances may have diverted investors’ attention away from gold ETFs, the WGC says. This was particularly evident in the UK, where gold ETFs accounted for the lion’s share of the region’s negative flows ($1.3 billion, 21 tonnes).
In Asia, Chinese funds witnessed outflows of $200 million (3 tonnes) during January, taking up the…
