FRANKFURT (dpa-AFX) - The amount of gold held in custody for investors by Deutsche Borse has shrunk again. At the end of December 2023, 198.7 tons of the precious metal were stored in the company's vaults in Frankfurt, Deutsche Borse announced on Thursday. A year earlier, the figure was 231 tons; as at 30 June 2022, holdings had reached a record high of 242 tons.

Deutsche Borse saw the downward trend as a "normal reaction" of investors to the market environment: "The turnaround in interest rates has created new, short-term yield opportunities," explained Michael Konig, Managing Director of Deutsche Borse Commodities, the issuer of Xetra-Gold.

In addition, the gold price in euros was higher than ever before. At the beginning of December, the gold price had reached a high of 2135 US dollars or 1950 euros per troy ounce (31.1 grams). Investors were therefore able to take profits as well as switch to overnight and fixed-term deposits in the wake of higher interest rates following the European Central Bank's (ECB) interest rate turnaround in summer 2022.

Almost eight tons of gold delivered to investors since 2007

Whenever investors purchase the Xetra-Gold bond, the amount of gold in Deutsche Borse's vaults increases. One gram of the precious metal is deposited for each share certificate. Investors can also have their shares delivered: according to Deutsche Borse, investors have made use of this option 1819 times since the introduction of Xetra-Gold in 2007, with a total of 7.9 tons of gold delivered.

At the end of 2023, the gold held in custody for investors by Deutsche Borse was reportedly worth a total of 11.9 billion euros. A gold-based security traded on the stock exchange is also offered by Borse Stuttgart ("Euwax Gold")./ben/DP/mis