RIYADH: Demand for gold exchange-traded funds remained strong in the first half of 2022, despite the second consecutive month of outflows, according to the World Gold Council.
In its mid-year outlook, the WGC said global gold ETFs registered $1.7 billion, down from the $3.1 billion in May.
Even though these recent flows push Q2’s net outflows to $2 billion, year-to-date net inflows remain positive at $14.8 billion.
WGC also added that holdings at the end of June stood at $221.7 billion, up 6 percent compared to the same period last year.
The WGC report further noted that North American and European funds were the only regions to see outflows in June.
Saudi Arabia’s saw outflows of $2.1million in June, bringing the outflows for the year to $6.5million.
“Rate hikes may create headwinds for gold, but many of these hawkish policy expectations are priced in. Continued inflation and geopolitical risks will sustain demand for gold as a hedge,” said WGC.
WGC added that the underperformance of stocks and bonds in a potential stagflationary environment may also turn positive for gold in the coming months.