Gold-ETFs see strongest inflows within the first half of the 12 months since 2020 – Commerzbank

Just a few days in the past, the World Gold Council printed information on Gold ETF holdings for June, Commerzbank’s commodity analyst Carsten Fritsch notes.

Affect of ETF purchases on costs has waned

“In line with this, there was a month-to-month improve of 75 tons. Within the second quarter, internet purchases by ETF traders amounted to 170 tons, and within the first half of the 12 months to 397 tons. In line with the WGC, these had been the strongest ETF inflows in a primary half in 5 years. At the moment, the coronavirus pandemic and the next large easing of financial coverage by central banks had been the triggers.”

“This time, it was probably the uncertainty brought on by US President Trump’s erratic tariff coverage. The vast majority of ETF inflows occurred in February, March, and April, when uncertainty surrounding tariffs was at its peak. Greater than half of ETF inflows within the first half of the 12 months had been attributable to Gold ETFs within the US.”

“Robust ETF purchases thus contributed considerably to the sharp rise within the Gold value to a report excessive in April. Lately, nonetheless, the impression of ETF purchases on costs has waned. Though the Gold value rose considerably within the first half of June, it remained beneath its report excessive after which fell once more, leading to solely a marginal value improve on the finish of the month.”