Global Gold ETF Holdings Increase

The new crown virus epidemic brought uncertainty to the economy, and investors turned to safe-haven assets. According to the latest data released by the World Gold Council (WGC), the global gold ETF asset management scale recorded a record increase in the first quarter of this year, with an increase of 298 tons and a total net inflow of USD 23 billion, the highest absolute value in history Measured quarterly increase in asset management scale, the increase in the number of positions held is the highest in the quarter since 2016.

According to the report, as the global central bank initiates a new round of easing, the decline in interest rates will reduce the cost of holding gold, gold may perform strongly, and gold investment demand will also be driven by increased market uncertainty, but at the same time this may also be Such consumption needs to be unfavorable.

Global gold ETF holdings increased by 151 tons in March, equivalent to a net inflow of US $ 8.1 billion, equivalent to 5% of the asset management scale, which brought the total holdings to a record 3185 tons, mainly due to the financial crisis during the financial crisis The level, and the price of gold in the US dollar has hardly changed this month.

The WGC said that the uncertainty of the short-term and long-term impact of the New Coronary Pneumonia epidemic on the global economy has caused the volatility of most assets to rise sharply, and it has also pushed the world’s major securities markets into a bear market, driving investors to switch to safe-haven assets such as bonds and gold. Against this background, gold ETFs in all regions of the world experienced strong inflows in March.

Looking ahead, the WGC expects that the factors driving the demand for gold investment in the near future may continue: extensive market uncertainty and the reduction in the cost of holding gold in the global market after the decline in interest rates; low interest rates have a positive impact on gold prices. As the Federal Reserve lowers interest rates to zero in the foreseeable future, gold may perform strongly; trillions of fiscal policies promulgated by governments around the world in response to the new crown epidemic or an environment that causes high inflation are expected to support gold prices in the long term.

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Global Gold ETF Holdings Increase - /10


The new crown virus epidemic brought uncertainty to the economy, and investors turned to safe-haven assets.

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