Gold ETF, Gold ETF Buying, Gold ETF Outflow: The World Gold Council has released its Gold ETF Commentary for November 2023, shedding light on significant trends in the global gold market. Key highlights include a notable slowdown in outflows from global gold ETFs, particularly in North American funds, driven by geopolitical risk and investor positioning. Despite a 7% decrease in collective holdings so far in 2023, total assets under management (AUM) experienced a 5% increase due to higher gold prices.
In November, physically backed gold ETFs globally experienced a modest outflow of US$920 million, considerably narrower than the previous month. Holdings decreased by 9 tons, reaching 3,236 tons, while total AUM rose by 2% to US$212 billion, supported by a 2% rise in the gold price.
Examining long-term trends, collective holdings of global gold ETFs lost 235 tons in 2023, standing at 3,236 tons, 17% lower than the all-time month-end high recorded in October 2020. European funds saw significant year-to-date outflows of US$9 billion, marking the region’s second-worst performance in history.
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Regional highlights indicate that North American funds attracted net inflows of US$659 million in November, breaking a five-month losing streak. In contrast, Europe experienced outflows for the sixth consecutive month, shedding nearly US$2 billion. Meanwhile, the appreciation of local currencies, resulting in relatively weaker performances of local gold prices compared to their USD counterparts, dampened investor enthusiasm.
On a positive note, inflows were partially mitigated by FX-hedged products, primarily originating from Switzerland, thus offsetting some of the losses incurred in November. Among the notable trends, funds listed in Germany experienced the region’s most significant outflows during the month.
Asian funds maintained a modest increase in inflows (+US$47 million) in November. Inflows from India and Japan surpassed outflows from China. Conversely, the Other region witnessed subtle outflows (-US$21 million), predominantly from Australian and
Year-to-date highlights show that November contributed to global gold ETF outflows reaching US$14 billion. Europe and North America witnessed substantial losses, while Asia remained the only region experiencing inflows.
In the COMEX market, global gold market trading volumes averaged US$174 billion per day, reflecting a 3% increase month-on-month. The World Gold Council’s analysis indicates a rise in net long positioning on COMEX, reaching 658 tons at the end of November, a 23% increase month-on-month. Money manager net longs also surged by 36%, reaching 449 tons, reflecting positive investor sentiment amid the gold price rally.
