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Massive gold ETF influx in March

Paper gold buying explodes to all time value record
April 8, 2020

Gold has proven its status as a safehaven after a record inflow into ETFs in the March quarter, according to World Gold Council (WGC) data.

The precious metal has climbed over $1,650 (£1,335) an ounce (oz), its highest point in seven years. The WGC said gold-backed ETFs added 298 tonnes (t) worth of gold, or 10.5moz, in the first quarter. Over half of this came in March itself, with 151t added. 

Because of the high gold price this was the largest amount ever in US dollar terms. Gold dipped after the oil price crash and subsequent selloff from 9 March as investors covered other losses, but recovered in the second half of March. 

Gold miners also saw a selloff in the first week of March, with the VanEck Vectors Gold Miners ETF falling a third on 9 March. The recovery was less strong than gold itself, however, with the VanEck tracker still down 10 per cent on a month ago.