Global investors flee gold ETFs in March

Core Insights - Gold ETFs experienced significant outflows in March, with $21.35 billion withdrawn against $9.12 billion in inflows, indicating a negative sentiment towards gold investments [1][2] - The price of gold has declined by 15% over the past month, currently trading at $4,551.08 per ounce, down from a peak of $5,608 per ounce on January 30 [3] - The outlook for gold remains bearish due to factors such as rising crude oil prices, a strengthening dollar, and concerns over global inflation, which may lead to increased interest rates [5] Investment Trends - Year-to-date data shows that gold is primarily being held by Asian investors, particularly in India and China, with net inflows into gold ETFs in Asia amounting to $13.29 billion, while North America and Europe saw net outflows [7] - China and India are leading in gold ETF investments, with inflows of $7.93 billion and $3.13 billion respectively, while Japan also contributed positively with $1.02 billion [9] - The Nippon India ETF Gold BeES and several Chinese ETF funds ranked among the top global ETFs for inflows, with the SPDR Gold Minishares Trust leading at $2.62 billion [10] Price Forecast - BMI maintains a gold price forecast of an annual average of $4,600 per ounce for 2026, despite current pressures on gold prices due to geopolitical tensions and market conditions [6] - The average gold price year-to-date as of March 25 is reported at $4,899 per ounce, starting the year at $4,331 per ounce [6]