Mubasher: Holdings in gold-backed exchange-traded funds (ETFs) globally retreated by 33 tonnes last February to 2,479 tonnes, after four straight months.

This decline is equivalent to nearly $1.3 billion in outflows, the World Gold Council (WGC) said on Thursday.

Total holdings remained close to levels seen in early 2013, at around 2,479 tonnes, when gold prices were 23% higher.

ETF holdings rose 2% until now this year, while outflows last month dented the upward trend that started in the third quarter of this year.

Nevertheless, global gold-backed ETF flows remained positive on-year due to strong inflows in January, with collective inflows of 39 tonnes.

Global assets under management (AUM) fell 2% to $105-billion during the month.

Global outflows over the course of last month were mainly driven by North American funds “as momentum investors took profits using these, the most liquid of US-based funds,” the WGC said.

In addition, low-cost ETFs, which are linked to strategic allocations, saw sustained inflows, according to the industry research firm.

Low-cost ETFs added 20 tonnes in the past seven months, growing by around 67%.

Funds in Asia saw outflows of 5%, while they remained flat in European and other regions.

UK-based fund continued to see inflows, with all-time record high holdings of 506 tonnes, driven by Brexit.

Net outflows in gold-backed ETFs came as global equity markets extended their rally, moving up 2% on the month.

They now reached 8% higher over the first two month of this year, the strongest level in three decades, the council said.