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Global gold ETFs see worst half-year performance since 2013

Global gold ETFs see worst half-year performance since 2013






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(MENAFN) Global gold exchange-traded funds (ETFs) suffered their worst six-month performance since 2013, with losses totaling US$6.7 billion since the beginning of the year. Total ETF assets fell by 120 tonnes to 3,105 tonnes of gold, according to a new report by the World Gold Council. Despite these challenges, June saw a positive outlook, with global gold ETFs attracting inflows of US$1.4 billion, marking the second consecutive month of positive gains. These inflows were broadly distributed across all regions, with the exception of North America, which saw a slight outflow for the second consecutive month.

Average daily trading volume in global gold markets in June was US$195 billion, reflecting a 9.5% decrease from the previous month. However, global gold market liquidity remained robust at an average of US$210 billion per day, exceeding the first quarter average of US$182 billion per day. In Europe, funds added US$1.4 billion in June, reducing first-half outflows to US$4.9 billion. However, European funds posted their worst performance since 2013, with total outflows of US$8 billion for the period.

In Asia, gold ETFs extended their inflow streak to 16 months, attracting US$560 million in June, with China adding a significant US$429 million. This took the region’s total inflows in the first half to a record US$3.1 billion. In contrast, North America saw significant outflows, with US$573 million in June marking the largest outflow in three years. North American outflows totaled US$4.9 billion in the first half of the year, driven by a strong dollar, continued gains in equities and geopolitical risks that limited losses but failed to halt the outflow trend.

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