Morning Bites

📉Gold-backed ETFs sold 19t of gold net in May, after the +115t in April, according to World Gold Council data. Most of the outflows were recorded in North America (-16t). However, since May 2024, global funds have accumulated 462t net (~10% of world physical demand, in annualised terms), following the monetary easing cycle in key economies (EU/US and China) as well as geopolitical unrest. These factors are still in place and the ETF outflows are unlikely to be sustainable, in our view

Although at spot gold continues to trade above what we see as its fundamentally reasonable level for 1H25 (~USD 2,500/oz), we think the precious metal’s price will remain elevated in 2025, given strong inflows into global central banks and ETFs, in addition to the global trade related concerns

#ETF #gold