Gold price set for biggest weekly jump in 20 months on haven demand
The precious metal has surged around 30% so far this year, supported by healthy central bank buying.
Global physically backed gold exchange traded funds (ETFs) attracted their first inflows in May after a year, powered by additions to holdings by Europe- and Asia-listed funds, the World Gold Council (WGC) said on Thursday.
Safe-haven demand driven by geopolitical and economic uncertainty, as well as persistent central bank buying contributed to a rally in gold from March to May, taking spot prices to a record $2,449.89 per ounce on May 20.
Gold ETFs, which store bullion for investors and are a major category of investment demand for the precious metal, saw the inflow of 8.2 metric tons, or $529 million, in May, the WGC, an industry body whose members are global gold miners, said in a research note.
Higher gold prices and inflows drove total assets under management up 2% to $234 billion, the highest since April 2022, it added.
Their collective holdings rebounded to 3,088 tons in May, but were still 8.2% below the 2023 average.
Gold ETFs had three consecutive years of outflows with 244.4 tons of decline in 2023 amid high global interest rates.
(By Polina Devitt; Editing by Sriraj Kalluvila)
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