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Gold ETPs flourish in January as equity inflows slow

Gold_ETFsInflows into gold exchange-traded products (ETPs) increased tenfold in January as flows into equities slowed.

Overall the global ETP sector saw new investor cash to the tune of $66.5 billion (€60.9 billion) throughout the first month of 2020, down from the $85.8 billion of inflows in December, which was the second highest inflow month on record, according to the latest fund flow data from BlackRock.

The drop was attributed to less buying into equity ETPs as fixed income and commodity flows increased month-on-month.

Gold ETP inflows reached $3.1 billion, up from $0.3 billion in December, marking a strong turnaround from the redemptions seen in November.

Overall inflows into equity ETPs slowed across most exposures throughout the first month of the year, while European equities saw their first outflows since August last year. Investors selling Eurozone and German equities saw redemptions hit $1 billion.

Buying in US equities fell by around 60% to $14 billion, while emerging market equity flows dropped from $14 billion in December to $5.5 billion in January.

Fixed income ETPs gathered $24.9 billion – a marginal increase from the $24.4 billion of inflows seen the previous month.

Commodities reversed the $0.2 billion of redemptions in December, with inflows reaching $5.1 billion – around 60% of which went into gold ETPs.

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