LONDON (Reuters) – Funding flows into Chinese language bodily backed gold exchange-traded funds to date this month have exceeded these for the entire of the primary quarter and overtaken inflows registered by U.S.-listed funds, World Gold Council information confirmed.
Gold ETFs in China elevated by 29.1 metric tons within the first eleven days of April, John Reade, senior market strategist on the WGC, stated on social media on Monday. That compares with the inflows of 23.5 tons registered in January-to-March.
“If the primary quarter of this yr was dominated by the U.S. tariff-related gold flows and Western ETF shopping for, the second quarter might have a really totally different theme, that of a surge in investor curiosity in gold from China,” he stated.
Whereas U.S-listed funds led exercise within the first quarter, to date in April they’ve lagged China, with inflows of 27.8 tons, based on the information.
Gold, thought-about by many traders as a hedge towards geopolitical and financial dangers, is up 22% to date this yr, having hit a document excessive of $3,245.42 per ounce on Monday, pushed by uncertainty triggered by U.S. President Donald Trump’s coverage of tariffs.
Tit-for-tat tariffs between the U.S. and China drove the yuan to a 2007 low towards the greenback final week. The Chinese language foreign money has misplaced about 0.6% since April 2, when Trump introduced his reciprocal tariffs.
World gold ETFs, which retailer bullion for traders, registered the biggest quarterly influx in three years in January-to-March.
The gold premium in China ended final week at 1% above the London benchmark in comparison with 0.2% every week earlier. Sellers charged premiums of between $24 and $54 an oz.. [GOL/AS]
One gold dealer, talking on situation of anonymity, stated international bullion banks had been “unusually energetic” in China final week, importing vital portions of gold because of this excessive premium.
(Reporting by Polina Devitt and Rajendra Jadhav; Modifying by Pratima Desai and Barbara Lewis)