Morning Bites (part 1)

📉Gold-backed ETFs reduced their holdings by a further 34t in February (after the 26t decline in January). According to the WGC, gold ETFs last month saw outflows in EU (-25t) and in N. America (-10t). We reiterate our view that ETFs remain the main factor pressuring gold performance, despite the substantial growth in physical gold demand during 4Q22

🇨🇳In February, the PBoC increased its gold reserves by 25t, to a total of 2,050t, after the 30 and 15t growth in December and January, respectively. This represented ~7% of world monthly physical gold demand in 2022, on our numbers. Historically, when Сhina's central bank has started buying gold, the process has lasted as much as a year (as in 2015-16 and 2019). We therefore believe further purchases in 2023 are a distinct possibility, which might add some support to the precious metal's price. To recap, global institutions more than doubled their gold purchases YoY in 2022

#ETF #gold
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