(Bloomberg) -- Gold exchange-traded product inflows surged more than 11-fold in the U.S. and Europe in the second quarter, according to Deutsche Bank AG.
Investment climbed to $11.6 billion, the bank said in a report dated today and given to reporters in London. In the prior quarter, inflows were $224 million in the U.S. and 547 million euros ($687 million) in Europe, or about $981 million based on the average currency rate in the period.
The second-quarter total “easily surpassed the cumulative gold inflows of the past five consecutive quarters put together,” strategists including Christos Costandinides said in the report.
Assets in gold-backed products and bullion prices climbed together to a record in the past month on investor demand stoked by Europe’s sovereign-debt crisis and on concern that the global economic recovery may slow. The MSCI World Index of equities slid 13 percent in the second quarter and the Reuters/Jefferies CRB Index of 19 raw materials declined 5.4 percent.
Gold-product inflows in the U.S. fell 52 percent to $2.31 billion in June, while European investment slid 61 percent to 687.7 million euros, Deutsche Bank said. In May, inflows more than quadrupled in both the U.S. and Europe compared with April.
Deutsche Bank is one of the five lenders that carry out the twice-daily “fixing” of gold prices in London, along with Barclays Plc, HSBC Holdings Plc, Bank of Nova Scotia and Societe Generale SA.
Global gold assets held by exchange-traded products were little changed near a record at 2,072.4 metric tons on July 9, according to Bloomberg data from 10 providers. Bullion for immediate delivery traded at $1,204.65 an ounce at 3:19 p.m. in London. The metal reached a record $1,265.30 on June 21 and is up 9.8 percent this year, headed for a 10th annual gain.
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