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Exchange-traded funds post 'massive' inflow of gold - analysts

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(Kitco News) - Global exchange-traded funds posted a large inflow on Friday, analysts said. BMO Capital Markets said the “massive” increase in holdings amounted to 27.3 metric tons, or 974,000 ounces, and occurred as June options expired for SPDR Gold shares (GLD). “This mainly came from one large U.S.-listed fund,” BMO said. The bank said this takes month-to-date inflows to 55.6 tons, or 1.96 million ounces, with the vast majority of this coming from North America. Commerzbank added, “This was the most pronounced daily inflow since mid-January. The lion’s share of the inflows was attributable to the U.S.-listed SPDR Gold Trust, namely 23 tons.” Gold-backed ETFs trade like a stock but track the price of the metal, with the commodity put into storage to back the shares. This gives investors exposure to the price of gold without taking on costs such as storage of assaying. “Gold prices have rallied 15% so far this year, supported by the rolling out of massive monetary stimulus from central banks around the world in response to the economic fallout of the COVID-19 pandemic,” BMO said.

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