Gold ETFs drew first net inflow in four years in 2024, WGC says

Thu Jan 09 2025

Physically backed gold exchange-traded funds (ETFs) registered a modest net inflow of $3.4-billion in 2024, their first inflow in four years, even though their holdings fell by 6.8-metric tons, the World Gold Council (WGC) said on Wednesday.

Gold ETFs store bullion for investors and account for a significant amount of investment demand for the precious metal, which hit a record high of $2 790.15/oz on October 31 and saw the strongest annual price growth since 2010 in 2024.

"In a year in which the gold price reached new all-time highs 40 times, global investor appetite for gold ETFs finally turned around," the WGC, industry body grouping global gold miners, said in a research note.

After three consecutive years of outflows against a backdrop of high interest rates, the modest inflow in value terms was led by Asia-listed funds and improved appetite from North American funds as major central banks began their rate easing cycles.

Total assets under management at gold ETFs rose by 26% to $270.5-billion in 2024, while collective holdings fell by 0.2% to 3 218.8 t.

The WGC estimates that gold trading volumes across global markets rose by 39% to an average of $226.3-billion a day in 2024, the highest on record, with trading in the over-the-counter (OTC) market adding 37%.

Source: https://www.miningweekly.com