Investors flooded out of gold-backed ETFs in November, marking a turning of the tide for the precious metal.
Following ongoing months of steady inflows, November was the first month of the year that gold ETFs experienced redemptions, according to data from the World Gold Council.
According to the organisation, the outflows were the second largest on record at nearly $7 billion (€5.69 billion) as the price of gold declined by over 6%.
In terms of weight, holdings in gold ETFs decreased by 107 tonnes for the month.
However, despite a “lacklustre” performance in November, overall net inflows for the year of $50.3 billion remain well above the highest yearly amount on record, according to the report.
Adam Perlaky, manager of the WGC’s investment research, said: “We’re not surprised that investors felt more optimistic on the heels of vaccine news and what seems like certainty in the US election outcome. That said, 2020 has been defined by market volatility and swings in all asset classes, so will be interesting to see how gold ends its otherwise strong 2020 run in December.”
© 2020 funds europe
