Strengthening consumer demand mitigates impact of gold-backed ETF outflows
By: Times News Service
Photo used for illustrative purpose only
Muscat: Gold investment demand fell in Q1 driven by hefty outflows in gold-backed exchange-traded funds (ETFs) as growing expectations of higher interest rates impacted sentiment, according to the World Gold Council’s latest Gold Demand Trends report.
While Q1’s overall global gold demand, at 815.7 tonnes (t), was on par with the preceding quarter, there was a significant (23per cent)drop year-on-year, as gold-backed ETFs saw 177.9t of outflows.
However, the effect of this drop in ETF demand was mitigated by the strength of bar and coin demand. Such retail gold purchases reached 339.5t (+36 per cent year-on-year), influenced by price-driven ‘bargain-hunting' and widespread concern over growing inflationary pressures.