Asian investors and ETF inflows provided main support for gold market in April

According to the World Gold Council (WGC), Asian investors, who have been dominating the physical gold market for the past two years, expanded their influence over the yellow metal's paper market. As noted by the organization, in April, Asia outpaced all other regions in terms of demand for gold-backed exchange-traded funds (ETFs) with a 65% share of net global volume.

The WGC report revealed that global gold holdings in ETFs expanded by 115 tons worth $11 billion to a total of 3,561 tons in April. This represented the fifth consecutive month of net inflows. The holdings are now at the highest level since August 2022.

As reported by the organization's analysts, the major part of the demand came from China. The ongoing trade tensions with the US are unsettling for local investors, increasing volatility in equities and expectations of depreciation of the country's currency. All these factors contribute to the growth of interest in the main precious metal.

Speaking about prospects of the gold market, the WGC analysts note the potential of its further growth to new highs, even despite the increased volatility and profit taking.