FX.co ★ XAU/USD, GOLD

XAU/USD April saw a rise in demand for gold ETFs, which saw inflows for the eleventh straight month. The rise in inflows coincides with a stabilisation of gold spot prices following a precipitous drop in March. Spot prices, which have been trading between $4,400 and $4,900 since late March, are often supported by rising ETF demand. As spot prices stabilise following a steep decrease in March, investors are continuing to increase their bets on gold through Exchange Traded Funds (ETFs), which is helping to boost demand for the precious metal. In April, India's Gold ETF inflows continued for an eleventh straight month. The World Gold Council (WGC) reports that net inflows totalled $297.2 million, which is 68% larger than the $176.6 million recorded in March. Over the past year, investors have consistently shown interest in gold exchange-traded funds (ETFs). These investment vehicles experienced inflows from the nation even during the significant 11% decline in gold prices in March, whereas investors from most other regions chose to withdraw. The general increase in interest in gold exchange-traded funds (ETFs) in April was aided by India. The highest inflows came from the United Kingdom (UK) ($2.1 billion), the United States ($845 million), and Hong Kong ($732 million). Global physically backed Gold ETFs had inflows of $6.6 billion in the month, partially reversing March's losses. Since investor demand through ETFs typically has a direct impact on the physical market, positive flows via ETFs serve as a bellwether for spot pricing. Since the end of March, gold prices have fluctuated widely within a range of $4,400 to $4,900. The fast, hawkish repricing of global central banks' rate outlook is also limiting increases, even while geopolitics maintains the precious metal's appeal as a safe haven.