Gold-hungry investors drive ETF stockpile to new record in June

FILE PHOTO: An employee shows gold bullions at Degussa shop in Singapore June 16, 2017. REUTERS/Edgar Su/File Photo

LONDON (Reuters) - Gold-backed exchange traded funds (ETFs) added 104 tonnes of the metal worth $5.6 billion to their hoard in June as investors worried about the fallout of the coronavirus outbreak rushed to buy bullion, the World Gold Council said on Tuesday.

ETFs, which store gold for investors, added 734 tonnes to their holdings in the first half of 2020 - more than in any previous full year, the World Gold Council said.

Many investors think gold will hold or increase its value as weak economic growth, government borrowing and central bank stimulus devalues other assets.

Their purchases have helped push gold prices up around 17% this year to around $1,780 an ounce, the highest since 2012.

By the end of June, gold-backed ETFs held 3,620 tonnes of gold worth $206 billion, according to World Gold Council data.

Reporting by Peter Hobson; Editing by Mark Potter