Gold-backed ETFs gain popularity in nation

Chinese dama, or middle-aged women, who rushed to buy gold in 2013 when prices fell, seem to have turned to Chinese gold-backed exchange traded funds, which saw the fastest growth among Asian-listed funds in the third quarter of 2019, analysts and industry experts said.

Geopolitical tensions, worries over a slowdown in global economic growth, lower interest rates and negative yields in debt sparked a safe-haven rally in gold as prices of the metal soared to a level around $1,500 per ounce in that quarter, said a report on Gold Demand Trends Q3 2019 published by the World Gold Council.

Assets under management in Chinese gold-backed ETFs reached a record high of 17 billion yuan ($2.42 billion), or equivalent to about 50 metric tons in the third quarter, becoming the major impetus of the growth of Asian-listed funds during this period, World Gold Council China managing director Wang Lixin said.