Flows into gold ETFs reached $778 million in December, marking the first time that December flows have been positive since 2019.
ETFs are a popular means of investing in gold, and flows in and out of these products can often give a sense of which markets and events are driving gold demand.
Gold prices hit record highs during 2024, gaining 29.3% and outperforming many of the major stock market indices in the process.
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While gold ETF flows turned negative during November for the first time since April, December’s figures saw gold fund flows return to a positive.
It means that gold ETFs registered a net $3.4 billion inflows during the whole of 2024, bringing total assets under management (AUM) to $271 billion – the highest they have ever been.
There has historically been a close link between gold ETF flows and the gold price. Adrian Ash, head of research at BullionVault, tells MoneyWeek. "ETFs have played a huge role in gold’s long-term bull market so far this century, helping make it the best-performing asset bar none of the past 25 years."
Regional gold ETF flows
Throughout the gold rally, Asian buyers have been key drivers of the gold price, and December’s ETF flow data backs this up. Asian gold funds saw $748 million inflows during the month, just $30 million shy of the global net inflow figure. A fall in Chinese government bond yields is thought to be one of the major drivers.
North America ended a five-month inflow streak, as gold funds in the country registered outflows of $342 million. Hawkish rhetoric from the Federal Reserve weighed on gold prices as it increased US government bond yields.
European gold ETFs, however, posted inflows of $337 million during the month. Demand was especially strong in France, which the World Gold Council attributes to ongoing political uncertainty in the country. These were partially offset by outflows in Switzerland and Germany.
| Region | AUM ($ billion) | Fund flows ($ million) |
|---|---|---|
| Asia | 18.5 | 747.7 |
| Europe | 108.1 | 337 |
| North America | 138.5 | -341.6 |
| Other | 5.4 | 34.8 |
| Total | 270.5 | 777.9 |
| Global inflows / positive demand | Row 5 - Cell 1 | 6090.3 |
| Global outflows / negative demand | Row 6 - Cell 1 | -5,312.4 |
Source: World Gold Council
Which gold ETFs saw the largest inflows?
| Fund | Country | Fund Flows ($ million) |
|---|---|---|
| Amundi Physical Gold ETC | France | 374.3 |
| SPDR Gold MiniShares Trust | US | 203.7 |
| Huaan Yifu Gold ETF | China P.R. Mainland | 189.7 |
| Bosera Gold Exchange Trade Open-End Fund ETF | China P.R. Mainland | 116.4 |
| Guotai Gold ETF | China P.R. Mainland | 109.0 |
| WisdomTree Physical Swiss Gold | UK | 99.7 |
| Global X Bullion ETF | Australia | 85.4 |
| Pictet CH Precious Metals Fund - Physical Gold ‡ | Switzerland | 76.2 |
| Invesco Physical Gold ETC | UK | 62.3 |
| Japan Physical Gold ETF | Japan | 51.4 |
Source: World Gold Council
The Amundi Physical Gold ETC saw the largest outflows during December, underscoring the extent of investor demand in the country.
Asia’s central role in the gold rally was also highlighted by the presence of three Chinese and one Japanese funds among the top ten.
Which gold ETFs saw the largest outflows?
| Fund | Country | Fund flows ($ million) |
|---|---|---|
| SPDR Gold Shares | US | -496.5 |
| ZKB Gold ETF ‡ | Switzerland | -103.5 |
| Xetra-Gold | Germany | -80.7 |
| iShares Physical Gold ETC | UK | -79.2 |
| Global X Physical Gold | Australia | -63.3 |
| CSIF CH II Gold Blue DB USD ‡ | Switzerland | -48.8 |
| Sprott Physical Gold Trust | US | -33.9 |
| Sprott Physical Gold & Silver Trust | Canada | -30.3 |
| Royal Mint Responsibly Sourced Physical Gold ETC | Ireland | -28.8 |
| Invesco Physical Gold EUR Hedged ETC | Germany | -25.9 |
Source: World Gold Council
The US market’s turn against gold ETFs was highlighted by outflows of $496.5 million from the SPDR Gold Shares ETF – more than the remaining bottom nine funds combined.
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