Gold ETFs up 2% in February!
8% higher over the first two months of the year According to the reported by World Gold Council, after four straight months of inflows, holdings in global gold-backed ETFs and similar products fell in February by 33 tonnes (t) to 2,479t, equivalent to US$1.3bn in outflows. Global assets under management (AUM) fell by 2% in US dollars to US$105bn over the month. However, global gold-backed ETF flows remain positive on the year (US$1.7bn, 2% AUM) on the back of strong inflows in January. The primary driver of global outflows was North American funds, as momentum investors took profits using these, the most liquid of the US-based funds. However, we continued to see inflows into low-cost ETFs, a factor we believe is linked to strategic allocations. Funds in Asia also experienced outflows of 5%, while European and Other regions were flat. We continue to see inflows into UK-based funds, likely driven by Brexit. The 506t of current holdings stands at an all-time high. Net