Gold sees strong investment growth in Asia, particularly in China and India

Global gold exchangetraded funds ETFs have seen positive demand for the first time in 2024 with yeartodate inflows reaching 18 tonnes according to the World Gold CouncilAsian markets are driving this surge pushing total assets under management AUM up by an impressive 33 per cent Inflows in gold ETFs have reached a significant USD 47 billion this year In October alone Asian gold ETFs attracted USD 21 billion marking the regionrsquos 20th consecutive month of inflowsChina has been a major contributor with recordbreaking investments in gold ETFs This surge is largely driven by soaring local gold prices and increased volatility in the stock market A series of stimulus measures announced in late September further fuelled the demand resulting in the highest monthly inflow on recordIndia too has experienced steady growth in gold ETF investments Positive trends in gold prices alongside fluctuations in the stock market have increased goldrsquos appeal as a stable asset Recent changes in Indiarsquos longterm capital gains tax treatment for gold have also contributed to a rise in interest among investorsAs per the World Gold Council improved trading volumes in overthecounter OTC markets and an increase in ETF activity have strengthened global gold demand With global gold prices remaining high and stock market volatility continuing gold is becoming an even more attractive investmentThis growing interest in gold has led to a rise in gold ETFs elevating their assets to their highest levels in 2024 As geopolitical and economic uncertainties persist gold ETFs are likely to remain an attractive choice for investors seeking stabilityIn North America gold ETFs saw inflows for the fourth consecutive month in October with USD 27 billion added to the sector Despite the rise in bond yields and a stronger US dollar ndash factors that typically reduce interest in gold ndash investor concerns over uncertain interest rates bolstered by robust US economic performance continue to support gold as a safehaven asset The ongoing US presidential election and escalating geopolitical tensions particularly in the Middle East and concerning Russiarsquos involvement in Ukraine have further driven demand for goldIn contrast European gold ETFs saw outflows of USD 563 million in October with losses spreading across major markets rather than being concentrated in the UK as seen in previous months Rising yields on European government bonds coupled with a recent 25basispoint rate cut by the European Central Bank have increased the opportunity cost of holding gold The strengthening US dollar along with weakening local European currencies has further diminished the appeal of gold in EuropeOther regions have reported positive inflows for the fifth consecutive month Australian and South African funds collectively added USD 68 million in October In Australia a weakening Aussie dollar boosted gold returns for local investors which led to increased currency hedging activityAs per ANI these trends suggest that while some regions experience setbacks gold remains an important asset for many investors globally particularly in Asia where demand continues to riseWith inputs from ANI