LONDON: The amount of gold held by exchange traded funds (ETFs) fell by 84.7 tonnes worth $4.6 billion in February as rising bond yields reduced interest in bullion, the World Gold Council (WGC) said on Thursday.
ETFs storing gold for shareholders grew rapidly during the coronavirus crisis as investors amassed what they saw as a safe asset and central banks flooded markets with money, lowering bond yields and making non-yielding gold more attractive.
Investor stockpiling drove gold to a record high of $2,072.50 an ounce in August, but prices fell as markets began to anticipate economic recovery and U.S. bond yields rose.
Gold-backed ETFs saw large outflows in November and December and a small inflow in January. By the end of February they held 3,681 tonnes worth $207 billion, the WGC said.
Gold traded at around $1,710 an ounce on Thursday.
