World Gold Council data showed that these funds registered net investment inflows of about $ 40 billion, a new record and higher than the annual record level recorded in 2016 of $ 36 billion.
The funds recorded during the month of June, net monthly inflows for the seventh month in a row, with the volume of flows reaching about $ 5.6 billion, or about 104 tons, which also represents about 2.4% of the total assets managed by those funds.
The holding of gold funds increased by the end of the first half of this year to 205.8 billion dollars, an increase of 19% on an annual basis, while the actual holding size of these funds amounted to 3,620 metric tons.
The council said that the reason for the strong demand for gold by these funds is the uncertainty about the emerging corona virus with a new second wave looming that may cause a wide wave of sales of risky assets, which enhances the attractiveness of the precious metal as a safe haven in times of crisis. .
The report added, “To put the matter in context … the volume of flows to gold in the first half recorded record levels higher than the level recorded in several contracts for the net purchase of central banks and the record during the past two years, which may represent about 45% of gold production in the first half of this year.” .
Since the beginning of this year, gold prices have increased by about 17%, with a record rally approaching levels of $ 2000 an ounce, at a time when international investment banks expected to continue the demand for the yellow metal momentum during the coming period in light of the state of uncertainty surrounding the global economy due to the pandemic of the emerging Corona virus. .