Commodities Buzz: Gold Backed ETFs Add 72.2 Tonnes in April

Global gold-backed ETFs holdings added 72.2 tonnes(t) to 2,481t in April as per the latest report of World Gold Council (WGC). This is the strongest month of net inflows in more than a year. Growth in global holdings was led by significant North American and European inflows and supported by a small increase in Asia. ETF inflows were steady throughout the month even though the gold price retraced early gains, finishing April 1% down, after reaching an intra-day high of approximately US$ 1,360/oz mid-month.

Global stocks were mostly higher during the month, but many indices remain down or flat for the year. Market uncertainty stemming from missile strikes in Syria by the US, the UK and France, as well continued trade war rhetoric cast a cloud over the markets. At the same time, higher inflation expectations and a weaker US dollar through April offset the negative effect of higher interest rates on gold.