A Solid April For Gold ETFs

Globally listed gold exchange traded products, including the  SPDR Gold Shares (NYSEArca: GLD), iShares Gold Trust (NYSEArca: IAU), are on an impressive asset-gathering streak. As of the end of the first quarter, gold ETFs listed around the world are on a five-quarter asset-gathering streak.

The good times continued in April whenglobal gold-backed ETFs holdings added 72.2 tonnes(t) to 2,481t in April. This is the strongest month of net inflows in more than a year,” according to the World Gold Council (WGC).

As the dollar has strengthened, GLD and other gold ETFs have recently given back some gains and are now flat on a year-to-date basis. Additionally, global gold demand dipped in the first quarter, but ETFs were an exception.

Rising inflation is still seen as a catalyst for gold and if the yellow metal and can climb toward $1,400 per ounce, that could be significant on a technical basis.

Demand Drivers for Gold

IAU and GLD, the world’s largest gold-backed ETF, drove demand for gold ETFs in April.

“North American funds continue to account for the overwhelming majority (54%) of gross global inflows, led by iShares Gold Trust (45t, US$1.9bn), SDPR Gold Shares (33.7t, US$1.5bn). Elsewhere, Xtrackers Physical Gold (15.6t, US$0.7bn) and Bosera Gold (11.7t, US$0.5bn) have also captured significant flows,” said the WGC.