Following the strongest month since May 2023, global gold ETFs have now seen inflows two months in a row; in June, notable European and Asian buying offset outflows from North America. Although June and May inflows helped limit global gold ETFs’ y-t-d losses to US$6.7bn (-120t), this remains the worst H1 since 2013 – both Europe and North America saw hefty outflows while Asia was the only region with inflows
Global physically backed gold ETFs witnessed their second consecutive monthly inflows, attracting US$1.4bn in June. Inflows were widespread, with all regions seeing positive gains except for North America which experienced mild losses for a second month. In general, lower yields in key regions and non-dollar currency weaknesses increased gold’s allure to local investors, pushing global gold ETFs’ total AUM 8.8% higher y-t-d to US$233bn. Collective holdings also continued to rebound, reaching 3,105t.
Year-to-date, global gold ETFs have lost US$6.7bn, their worst H1 since 2013. Total holdings have dropped by 120t (-3.9%) to 3,105t during the period, well below their October 2020 monthly high of 3,915t. While Asian funds attracted a record US$3bn during the first half, they were significantly outpaced by collective outflows in North America and Europe to the tune of US$9.8bn.
It is worth noting that Western gold ETF investors did not react as anticipated to the rise in the gold price – which commonly drives up investment flows – amidst a high level of interest rates and a more risk-on sentiment generated by the AI boom. In contrast, Asian flows rhymed with the price strength – weaknesses in non-dollar currencies and gold’s staggering performance in those currencies attracted investors in the region.
Heera Zhaveraat (HZ International) A Diamond, Watch and Jewellery Trade Promotion Magazine provide dealers and manufactures with the key analytical information they need to succeed in the luxury industry. Pricing, availability and market information in the Magazine provides a critical edge.
