Meanwhile, European outflows came as the euro currency weakened 80 basis points against the U>S. dollar over the month.
North American gold-backed funds are slowly catching up to European funds in global growth in 2017, but they still trail 38% to 47%. European demand for gold-backed ETFs has increased in a politically charged year with a number of contentious elections spattered throughout 2017. Many investors may have turned to safe-haven gold as a way to mitigate potential political risks in an year marked by rising nationalistic and anti-euro sentiment that could shake the markets.
Global gold-backed ETFs collectively accumulated 2,356 metric tons of gold as funds added 191.9 metric tons, or $7.5 billion worth, year-to-date, representing a 7.7% rise in global assets under management since 2016. European funds continued to lead inflows, making up for nearly 56% of all inflows year-to-date.
For full disclosure: Tom Lydon’s clients own shares of GLD