International investors reduce investments in gold for the second week in a row
After several months of buying gold, world investors began to reduce such investments. According to Bloomberg, over the past two weeks, the assets of exchange funds investing in this metal were reduced by 18 tons – to 2.77 thousand tons. Investors fix profit after the price of gold price increases by more than 30% and the achievements at the beginning of the third decade of April $ 3.5 thousand per ounce. Partially, money is transferred to American treasury bonds, the profitability of which increased at the expectations of a longer period of retaining the current levels of the US Federal Reserve.
For the second week in a row, international investors reduce gold investments. This is evidenced by Bloomberg data. According to the latest accessible estimates, the total assets of gold exchange funds last Friday, May 2, dropped 1.6 tons – up to 2766 tons. In two weeks, they decreased by more than 18 tons. Given the fact that since the beginning of the year, such investments have amounted to more than 200 tons, current sales look symbolic, but they have become the largest since November 2024.
Emerging Portfolio Fund Research (EPFR) also testify to reducing the interest of investors in gold. According to Kommersant, based on the Bank of America report (takes into account EPFR data), the total amount of net sales of shares of gold funds in the week ended on April 30 amounted to $ 1.5 billion.
Given the fact that in previous four months, world investors invested a record amount of funds in the amount of more than $ 36 billion, current sales have long been rude, analysts say. The reason for them, according to the analyst-strateg of the Alfa-Capital Criminal Code, Alexander Dzhioev, was overcoming with gold a psychologically important mark of $ 3.5 thousand per ounce. As a result of this growth, the cost of metal not only once again updated the historical maximum, but also exceeded the levels of the beginning of the year by more than 33%.
In addition to this, the growth of real profitability in the United States that happened in April strengthened the alternative costs of metal ownership. The yield of ten -year -old UST in April reached 4.6%in April, which, taking into account inflation, about 2.4%involves a real yield of about 2%. This makes gold less attractive in the absence of coupon income. “The US Federal Reserve, despite the signs of slowing down inflation, retains a rigid tone: on the eve of the meeting on May 7, the market lays a longer pause before the first reduction in the rate. This was the reason for the partial revaluation of long positions and fixing the profit after the rally, ”said Astero Falcon Astero Falcon Astero Nikolaeva.
The decline in interest in precious metal had a negative impact on its cost. Last week on Thursday, May 1, the cost of gold fell to a minimum from April 11 – to the mark of $ 3.2 thousand per triple ounce, which is almost 9% lower than the levels of two -week ago. On Monday, May 5, the price of the metal was adjusted to $ 3311.9 per ounce, but even taking into account the rebound of the quotation, still more than 5% lower than the historical maximum.
However, the overcoming of gold products to American treasury bonds is not a trend change, but tactical rotation within the conservative part of the portfolio. At the same time, the short -term, according to Alena Nikolaeva, outflows can continue until the position of the Fed and the July interchange in tariffs can be clarified. But the structural demand for gold is preserved. “At the first signs of a reversal of monetary policy, a slowdown in the US economy or an escalation of geopolitics, interest in gold will return,” Ms. Nikolaeva believes.
In this regard, analysts and managers consider it possible to return the cost of gold above the level of $ 3.5 thousand for triple ounce on the horizon of the coming months. At the same time, as noted by the analyst “The Figor of the Broker” Ivan Efanov, investors must be prepared for the fact that against the background of the continuing trade war Trump, metal can rise in price to tightening duties and getting cheaper when some concessions will be made. “Despite speculative movements, world uncertainty is only intensifying and globally the gold trend is maintained ascending,” says Mr. Efanov.
