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Global Gold ETF Holdings Skyrocket By 127 Tonnes In June

Kitco News

(Kitco News) - Gold holdings by global exchange-traded funds soared in June, rising by 127 tonnes to 2,548 tonnes, the World Gold Council reported on Tuesday.

The increase occurred amid geopolitical uncertainty and as central banks, including the U.S. Federal Reserve, signaled a shift to a more accommodative monetary policy over the coming months, the World Gold Council said. This drove market-set rates and the U.S. dollar lower, sending gold prices to a six-year high.

Most gold ETFs trade like a stock but track the price of the commodity, with the metal put into storage to back the shares. This gives investors exposure to gold prices without undertaking certain expenses such as storage and assaying of physical metal.

ETFs based in North America posted inflows of 65 tonnes, while those in Europe rose by 59 tonnes. Holdings of gold by Asian ETFs rose by 2.4 tonnes, while those from other regions had a 0.4-tonne increase.

European ETFs now account for their largest percentage of total global gold ETF assets in history at 47% of the total, the World Gold Council said.

In North America, SPDR Gold Shares added 51 tonnes, while iShares Gold Trust added 12 tonnes. In the U.K., ETFS Physical Swiss Gold grew by 23 tonnes during the month, while iShares Physical Gold ETC added 20 tonnes and Invesco Physical Gold added 5.7 tonnes.

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