While all regions had net inflows in July, North American funds once again led by a significant margin accounting for 75 per cent of global net inflows. The region added 118 tonnes (7 billion dollars, 5.5 per cent AUMs).
European-listed funds added 40 tonnes (2.1 billion dollars, 2.1 per cent AUMs). Asian-listed fund holdings rose meaningfully during the month by 4.9 tonnes (370 million dollars, 5.6 per cent AUMs). Funds listed in other regions registered a 3.4 tonnes gain (218 million dollars, 5.5 per cent AUMs) increase.
Global gold trading volumes rose sharply to 194 billion dollars a day in July, up 24 per cent from 167.6 billion dollars in June, said the World Gold Council in its latest update.
The current market environment highlights the multi-faceted nature of gold price behaviour. Economic weakness has significantly hurt jewellery, bar and coin and technology demand which have averaged 86 per cent of total gold demand over the past 10 years.
But geopolitical and economic uncertainty remains supportive for gold investment, and with real rates near or at all-time lows globally, the cost of holding gold remains low.
Finally, investment demand and momentum appear to be more than offsetting the shortfall from the economic weakness side.
With the recent demand shift, said the World Gold Council, only 32 per cent of demand came from jewellery, bar and coin and technology in Q2 with the remainder coming from investments -- like gold ETFs -- and central banks.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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