Gold ETP inflows at highest level since Brexit

Ongoing trade tensions and mixed equity market sentiment has seen gold ETP inflows spike in April to the highest level since the Brexit referendum in 2016.

Gold ETP inflows at highest level since Brexit

According to Blackrock’s ETP Landscape report for April, gold strengthened with inflows at $2.9bn, amid geopolitical tensions between the US and other countries, and strained relationships in the Middle East.

The asset management giant said the gold inflows highlighted demand for perceived safe-havens.

Wei Li, head of iShares EMEA investment strategy at Blackrock, said: “Flows into commodity ETPs led the inflows in April, with $1.7bn added over the course of the month, the highest level of buying since February 2017.

“The majority of flows went into gold where $1bn of assets were gathered as a result of ongoing trade tensions and mixed equity market sentiment.”

In contrast, EMEA-listed European equity ETPs lost $4.3bn – the largest month of selling in European equities since September 2014.

Li added: “A wave of mixed eurozone macro data, combined with stronger earnings expectations for the US relative to Europe, appear to have reduced investor confidence.”

Meanwhile, fixed income funds gathered $17.3bn, US equities with $6.9bn and emerging markets equities with $6.5bn.

US equities saw inflows for 12 consecutive months in the EMEA range for the first time since 2014.

Fixed income had its strongest month since June 2017 led by US treasuries, another safe-haven asset, with $6.6bn, focused in short maturities.

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