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Global Gold ETF Demand Rises To Six-Year High In July

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(Kitco News) - Surging market uncertainty is pushing investors into gold exchange-traded products at an unprecedented pace with holdings rising to a six-year high in July, according to the latest report from the World Gold Council (WGC)

Thursday, the WGC said that global gold -backed ETFs and similar products saw $2.6 billion in net inflows last month as holdings increased by 52 tonnes to 2,600 – a level not seen since March 2013.

“Last month’s flows continued the positive trend that had started in mid-May as uncertainty rose – whether from economic concerns, trade tensions or geopolitical risks – and global monetary policy started to shift to a more accommodative stance,” the council said in a press release.

Not only did investors jump into gold, they did it in a strong U.S. dollar environment the council said; Last month the U.S. dollar index rallied 2.5% to a one-year high.

North American investors dominated the ETF market, increasing holdings by 43 tonnes last month, the WGC said. The two biggest ETFs SPDR Gold Shares (NYSE: GLD) and iShares Gold Trust (NYSE: IAU) accounted for 75% of net global inflows.

Meanwhile, European-listed funds grew by 7.5 tonnes with the inflows spread across countries in the region. The WGC said that they expect to see European demand continue its positive growth trend.

“Looming concerns over Brexit, generally weaker currencies, negative interest rates, as well as other idiosyncratic risks, have supported gold investment demand,” the WGC said.

Funds in Asia and other regions also had positive flows of approximately 1t each the WGC said.

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