Invesco has reduced the fee on its physical gold ETC amid growing demand for the precious metal.

The $7.6bn Invesco Physical Gold ETC (SGLD) has seen its total expense ratio (TER) slashed by five basis points to 0.19%.

This makes SGLD the joint-cheapest gold ETP on the European market alongside the Amundi Physical Gold ETC, the iShares Physical Gold ETC and the WisdomTree Physical Swiss Gold ETF.

Demand for gold was high last year as central banks were once again net buyers of the precious metal.

Some $8.8bn inflows went into European-listed gold ETPs last year, according to the World Gold Council.

Chris Mellor, head of EMEA ETF commodity product management at Invesco, commented: “Investors have been turning to gold to provide a potential cushion in case of equity market volatility and concerns about slowing global growth and geopolitical risks.

“Gold tends to become even more attractive when yields on other investments, historically perceived as ‘safe havens’, are low or even negative.”

SGLD was launched in 2009 and is designed to offer investors the performance of gold as measured by the LMBA Gold Price.