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.
