However, investment demand for gold is yet to rebound. Total holdings in bullion-backed ETFs have continued to decline. January saw eight monthly outflows in global gold ETFs, led by North American funds. This was equivalent to a 51-tonne reduction in global holdings to 3,175 tonnes by the end of January, as shown by data from the World Gold Council. This trend has continued in February.
With the bets on early rate cuts from major central banks being pushed back, investors’ interest in gold ETFs faded with investors seeking returns in other assets.