Record outflows from ETFs – BNY

Finance

Record outflows from ETFs – BNY

BNY‘s report, authored by Head of Markets Macro Strategy Bob Savage, discusses significant outflows from China’s gold ETFs, totaling nearly $1 billion, following a sharp decline in gold prices. This trend reflects fragile investor sentiment after a recent peak in gold prices. Despite a recovery in prices, the report warns that the outflows indicate ongoing concerns among investors.

Gold ETF outflows

“China‘s gold ETFs suffered record daily outflows on Tuesday, with nearly $1bn pulled from the country’s largest bullion-backed funds as a sharp drop in gold prices rattled investor confidence.”

“The abrupt reversal followed golds pullback from an all-time high and its steepest single-day decline since 2013 during Asian trading on Friday, validating concerns that the rally had become overstretched.”

“Although bullion recovered more than 6% on Tuesday as dip buyers returned, the scale of ETF outflows highlights how fragile sentiment remains.”