World Gold Council: The total size of global physical gold ETFs will drop by about US$3 billion in 2022

(Financial World) World Gold Council: The total size of global physical gold ETFs will drop by about US$3 billion in 2022

　　China News Agency, Beijing, January 10th (Reporter Yan Xiaohong) The World Gold Council officially released a report on the 10th, stating that in 2022, the global physical gold ETF (exchange-traded fund) holdings will decrease by 110 tons (the outflow is about 3 billion U.S. dollars. ), a year-on-year decrease of 3% from 2021.

　　According to the World Gold Council, the trend of gold ETFs in 2022 is as follows: in the first four months, due to geopolitical conflicts, the demand for gold ETFs surged, and then as aggressive interest rate hikes became mainstream, global gold ETFs flowed out smoothly again, reversing the previous large inflow.

As of the end of 2022, the global gold ETF holdings are 3473 tons.

　　Demand for gold ETFs in North America and Asia has shrunk the most.

North America had an eye-catching performance at the beginning of 2022. The total demand for gold ETFs from January to April reached 188 tons, but in the following months, higher U.S. bond yields and a stronger dollar dealt a double blow to gold; It remained positive until November last year, but the position at the end of the year was still down by 1% compared with the same period in 2021.

　　Asian gold ETF funds outflowed 21 tons (about 1 billion US dollars).

Unlike North America and Europe, Asian funds have not seen a surge in demand in the first few months of 2022 as higher local gold prices triggered investor profit-taking; This tactical investment approach has been chosen for most of 2022.

　　It is worth noting that low-cost gold ETFs seem to be bucking the trend, and the net demand for such funds in 2022 is 48 tons.

　　In December 2022, global gold ETF demand has been negative for eight consecutive months, and global positions have decreased by 4 tons.

But the pace of gold ETF outflows/negative demand continued to slow as gold prices rose 3% for the month.

　　Looking ahead, the World Gold Council believes that gold performance may be driven by the interplay between inflation and central bank interventions.

The confluence of favorable and unfavorable factors means that the performance of gold in the next 12 months may be very similar to the situation in 2022-steady and good.

However, its prospects are still full of great uncertainties, and the possibility of extreme results still exists.

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