This week, we launched our February 2020 ETF flows report, which highlights the positive impact current market volatility is having on investment flows in gold-backed ETFs.

Inflows across all regions of nearly US$5bn during February (84.5 tonnes), boosted total gold ETF growth to 5% over the first two months of the year. Gold ETF assets values have grown 50% over the past twelve months as holdings continued to reach new highs of 3,033 tonnes, or US$153bn.

This trend has continued in the first week of March as gold moved higher. Through the first four trading days of March, global gold ETFs have added and additional US$2.3bn or 1.4%. 

In the report, we note some of the drivers including:

• Market uncertainty, volatility and the economic impact of the coronavirus

• Lower interest rates and Fed easing

• Gold price outperformance, compared to other major asset classes

• Bullish investment positioning in the golf futures markets, and

• Gold separating itself from other commodities