Liquidity-Driven Deleveraging Triggers Record Gold ETF Outflows
Gold prices dropped nearly 8% in Indian rupee terms as global prices fell 12% in March to around $4,608 per ounce. The decline was the sharpest monthly drop in more than a decade and the weakest performance since June 2013. Investors raised cash and reduced risk exposure to meet margin calls and reduce portfolio risk. This deleveraging drove record net outflows of $12 billion from global gold-backed exchange-traded funds in March. North American investors pulled over $13 billion, ending a nine-month streak of inflows.
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