Global gold exchange-traded fund (ETF) demand rebounded sharply in April, with net inflows reaching $6.6 billion, according to the World Gold Council. This marks a significant recovery after a subdued March, driven by renewed investor interest in safe-haven assets amid geopolitical tensions and economic uncertainty.
Regional Performance
Europe led the inflows, contributing $3.2 billion, followed by North America with $2.5 billion. Asia, excluding India, added $0.5 billion, while other regions accounted for the remainder. The surge was attributed to central bank buying, inflation concerns, and a weaker US dollar.
India's Continued Inflows
India extended its gold ETF inflow streak to 11 consecutive months, adding $1.2 billion in April. The country's total gold ETF assets under management now stand at $12.5 billion. Domestic investors continued to favor gold as a hedge against rupee volatility and equity market fluctuations.
The World Gold Council noted that Indian investors are increasingly using gold ETFs for portfolio diversification. The trend is expected to continue as global uncertainties persist.
Outlook
Analysts expect gold ETF demand to remain robust in the coming months, supported by central bank purchases and geopolitical risks. However, a potential rise in interest rates could pose a headwind. The council highlighted that gold's role as a strategic asset remains intact.
