Gold ETP holdings down 5% month-on-month

Total holdings in physically-backed gold exchange-traded products (ETPs) stood at 2,240.5t (72.0 moz) at the end of November, down 120.7t from a month earlier.

In value terms, total holdings stood at US$84.9bn (£67bn), 12% lower than at the end of October.

Holdings succumbed to selling pressure across all geographical regions. Notably, North American and European funds dropped 87.3t and 23.4t to 1,252.0t and 872.1t, respectively.

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In North America, SPDR Gold Shares and iShares Gold Trust saw outflow of 58.7t and 28.6t as market switched to the “risk on” mode after the US election. Their respective holdings stood at 883.9t and 202.4t by the end of November.

European funds followed suit. Outflows from Source Physical Gold (United Kingdom) was the most notable: its holdings sunk 9.5t (-9%) to 97.3t.

Gold ETPs in Asia and the other regions declined by 6.1t and 4.0t to 71.5t and 44.9t. The performance of the 4 Chinese funds diverged: Huaan Yifu Gold ETF shed 0.8t in November,  being partially offset by the 0.5t increase from Guotai Gold ETF.

World Gold Council, head of intelligence, Alistair Hewitt, comments: There was an abrupt change in sentiment in November and the gold price fell. Having been widely expected to be price-supportive, President-elect Trump’s surprise victory heralded a sudden reversal in investor sentiment and a surge in risk-on appetite in financial markets. Despite this, gold is still up almost 10% year-to-date and has been one of 2016’s best performing assets.”

Looking to next year he remarks: “Some of the themes present in 2016 are likely to remain for 2017. Heightened uncertainty will be an issue in Europe, which faces a busy political calendar with elections in the Netherlands, France and Germany. And in the US, a new president will enter office. Investors will be watching these events closely.”

Tags : Alistair HewittBrexitETPGoldTrumpUS electionWorld Gold Council

The author Stacey Hailes

Editor, Professional Jeweller

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