Trade physique the World Gold Council experiences that world buyers have continued to cut back their publicity to bodily backed gold exchange-traded funds (ETFs) in June, however inflows for the primary half of the 12 months remained optimistic.
World gold ETFs in belongings underneath administration (AUM) reached $526-billion on the finish of June, with a 6% fall within the first half of the 12 months, primarily owing to a decrease gold worth.
Collective gold holdings, nonetheless, have been up within the first half by 18 t to 4 047 t.
World gold ETFs recorded web outflows of $8.9-billion throughout June, with funds listed in each area experiencing investor withdrawals, as North America accounted for the biggest share of the outflows.
Asia led world demand, recording its strongest first-half inflows on file, whereas Europe additionally posted wholesome inflows.
North America was the one area to file web outflows over the six-month interval, and though AUM declined by 6% throughout the first half, primarily owing to decrease gold costs, complete holdings nonetheless elevated by 18 t.
The council attributes North America’s weak efficiency to a mix of decrease gold costs and altering expectations for US rates of interest. The area recorded outflows of $5.5-billion in June, taking first-half outflows to $7.7-billion, the weakest first-half efficiency since 2013.
“The notable gold worth pullback within the month served as a key driver for buyers to dial again their allocation to gold ETFs. As new [US Federal Reserve] chairperson Kevin Warsh despatched hawkish – because the market interpreted – indicators and the US-Iran battle pushed inflation fears up, expectations intensified of upper rates of interest forward.
“This anticipation contributed to rising actual yields and a strengthening greenback, pushing up buyers’ alternative prices of holding gold,” the council notes.
At current, the council expects flows into North American gold ETFs to stabilise throughout the second half of the 12 months. Whereas its base-case outlook factors to comparatively regular gold costs, it believes that continued geopolitical tensions, financial uncertainty and monetary market dangers might proceed supporting demand for gold as a safe-haven asset.
European funds recorded outflows of $818-million in June, lowering first-half inflows to $3.2-billion. On this regard, the Council feedback that weaker gold costs have inspired buyers to take income, whereas the European Central Financial institution’s (ECB) choice to extend rates of interest by 25 foundation factors additionally weighed on investor demand.
Asia recorded its largest month-to-month outflow on file in June, with buyers withdrawing $2.3-billion. Nonetheless, the area nonetheless delivered the strongest first half in its historical past, attracting web inflows of $12-billion.
A lot of the June outflows got here from Chinese language funds as bettering fairness markets and decrease gold costs have lowered demand for the valuable metallic, and Japanese funds additionally skilled outflows after the Financial institution of Japan raised rates of interest.
Nonetheless, the council additionally highlights that buyers in India continued to purchase gold ETFs as they considered the decrease gold worth as a chance to extend their holdings.
Funds in different areas posted comparatively modest outflows of $262-million in June. Australian funds recorded withdrawals of $197-million, whereas South African funds misplaced $36-million, trimming year-to-date inflows.
In the meantime, exercise throughout the worldwide gold market remained sturdy regardless of easing in June as the common each day buying and selling volumes declined by 13% month-on-month to $373-billion a day, reflecting decrease exercise in over-the-counter and exchange-traded markets.
Additional, the common each day buying and selling volumes reached a file $488-billion throughout the first half of 2026, supported by sturdy institutional participation and elevated investor curiosity in gold amid ongoing macroeconomic and geopolitical uncertainty.
“Trying forward, regional gold ETF flows might stabilise. The macro consensus state of affairs in our 2026 Mid-12 months Gold Outlook suggests comparatively steady gold performances within the second half, with potential catalysts presumably brewing a breakout in different situations.
“In the meantime, uncertainties surrounding geopolitics, financial progress and monetary markets linger. This backdrop could proceed to help investor demand for portfolio safety and maintain curiosity in gold ETFs as a strategic safe-haven allocation,” the council says.
