Gold ETFs simply pulled off one of many extra dramatic U-turns in current reminiscence. After hemorrhaging $12B in internet outflows throughout March, international gold-backed exchange-traded funds attracted $6.6B in contemporary capital in April.
What drove the reversal
A weakening US greenback made gold cheaper for worldwide patrons. Falling oil costs added one other layer of help. Central banks continued their multi-year gold buying spree, with sovereign patrons accumulating bodily gold reserves.
Gold’s greater image remains to be outstanding
Gold has gained roughly 210% since October 2023. The metallic lately skilled a correction of 16.5% from its highs, which doubtless contributed to March’s outflow spike.
The tokenized gold angle provides a brand new wrinkle
Whereas conventional gold ETFs had been staging their comeback, Binance’s gold futures contracts, launched in January, surpassed $100B in cumulative buying and selling quantity, with every day peaks hitting $6.6B.
Fairness ETFs captured $7.1B throughout the identical interval, that means gold ETFs had been operating practically neck-and-neck with shares by way of attracting new capital. Digital asset funds confronted $317M in every day internet outflows.
