Gold exchange traded funds added nearly 52 metric tons of bullion in the second quarter, reversing the outflows from the first quarter, the World Gold Council said in a report Thursday.
Gold ETFs saw net inflows of 51.7 tons in the second quarter, which was down from the year-ago quarter when inflows surged to 291.6 tons, according to the report.
ETFs and similar products that track gold prices saw net outflows of 56 metric tons, or about $2.5 billion, in the first quarter of 2011, according to the World Gold Council’s last quarterly update. [Gold ETFs Saw $2.5 Billion Outflow in First Quarter]
“The strength of demand in India and China, coupled with an overall drop in recycling activity this quarter, demonstrates that consumers have adjusted to the current price environment and expect the upward price trend to continue,” said Marcus Grubb, managing director of investment at the World Gold Council. “In addition, ongoing macroeconomic uncertainty, the continued sovereign debt crisis and widespread inflationary pressures, will result in gold demand remaining strong.”
Gold ETFs were rising in Thursday’s stock sell-off. [Gold ETFs Higher on Economic Jitters, Venezuela]