Gold-backed ETFs see $23 billion inflow during March 2020 quarter: WGC

The sharp rise, according to the WGC, was triggered by a flight to safety amid the coronavirus (Covid-19) pandemic that hit world economy hard, and plunged most global equity markets into a bear phase

Gold-backed exchange traded funds (ETFs) witnessed a net inflow of $23 billion, or 298 tonnes (t), in the January – March 2020 quarter across all regions, suggests the latest data from World Gold Council (WGC). This is the highest quarterly amount ever in absolute US dollar terms and the largest tonnage additions since 2016.

“During the past year, gold ETFs added 659 tonnes, the highest on a rolling annual basis since the financial crisis, with assets under management (AUM) growing 57 per cent over the same period,” WGC said.

The sharp rise, according to the WGC, was triggered by a