Gold-backed exchange-traded funds (ETFs) experienced rare outflows in November as Europeans liquidated their holdings, according to the World Gold Council (WGC).
Global funds lost 29 tonnes of the yellow metal last month, which pushed total holdings to 3,215 tonnes. Collective outflows were worth $2.1 billion.
This was the first month of outflows since April, the WGC said.
November’s drop, combined with a fall in the gold price, meant total assets under management (AUMs) declined 4% month on month, to $274.3 billion.
Bullion values slipped around 4% over the course of November. This was thanks in large part to a resurgent US dollar following Donald Trump’s Presidential election victory.
Despite November’s declining holdings, inflows for the year as a whole remain positive, at $2.6 billion.
Outflows Return
ETF outflows in November were chiefly down to heavy liquidations in Europe, the WGC said. It commented that “outflows were seen across all major markets in the region.”
Outflows totalled 26 tonnes and had a value of $1.9 billion. This reduced holdings to 1,288 tonnes and AUMs to $109.8 billion.
The council said that “a variety of challenges” have impacted fund flows more recently, including “weaker-than-expected macro-economic data, broader concerns around trade tariffs from the future Trump administration, central bank rate path uncertainty, [and] financial market behaviour shifting to risk-on.”
Asian ETFs also endured an unusual outflow in November, bringing to an end 20 months of consecutive inflows.
Funds witnessed two tonnes of negative flows which took total holdings to 208 tonnes. These outflows had a value of $145 million, dragging regional AUMs down to $18 billion.
The WGC said that “China dominated outflows as a notable local gold price drop dimmed investor interest. And the equity market, despite its volatility, continued to divert attention away from gold.”
However, Indian ETFs posted their eighth straight month of inflows, the WGC announced. It said this was “likely driven by rising equity market volatility and general bullish sentiment towards gold.”
North America Stays Robust
Last month’s outflows came despite North American ETFs reporting inflows for a fifth successive month.
Regional funds added one tonne of material to take total holdings to 1,655 tonnes. Inflows worth $79 million meant AUMs edged up to $141.1 billion.
The WGC said that “despite aggressive risk-on positioning after the US election outcome, which placed pressure on the gold price, the region still reported inflows primarily due to increased Canadian demand.”
It added that “the US faced outflows through the first half of the month, but experienced a rebound of inflows into month-end as the market started pricing in a weaker dollar and lower yields following Scott Bessent’s nomination as US Treasury Secretary.”
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