Flows Into Gold ETFs Continued In July, Says World Gold Council

Photo by Michael Norcia/Sygma via Getty Images

Sygma via Getty Images

Gold-backed exchange-traded funds (ETFs) reported further inflows in July as interest in Western markets swelled, according to the World Gold Council (WGC).

Global funds added 23 tonnes of the precious metal last month, lifting cumulative holdings to 3,639 tonnes.

The WGC said that “July inflows came mainly from Western funds, divided almost equally between North America and Europe.”

It added that “global inflows are currently on pace for their second strongest year on record.” Total holdings at the end of July stood at their highest level since August 2022.

Gold ETF flows.

World Gold Council

In monetary terms, inflows totaled $3.2 billion and helped push assets under management (AUMs) to new record peaks of $386.4 billion.

The Council noted that “sustained inflows and a higher gold price pushed global gold ETFs’ AUM to another month-end high.”

Gold ETFs have now risen for two straight months following a rare outflow in May.

Daily gold trading volumes.

World Gold Council

North American Gold Funds Grow

In North America, funds added 13 tonnes of the shiny commodity to nudge total holdings to 1,870 tonnes.

With a value of $1.4 billion, this pushed regional AUMs to $198.3 billion.

Year-to-date inflows in North America totaled $22 billion, putting them on course for their second-strongest annual performance on record.

The WGC said that “while flows remained positive, they did slow.” It attributed this to a short-term rebound in the US dollar as expectations of future Federal Reserve interest rate cuts were pushed back.

The body added that “some investors likely took profits and rotated into equities, especially as recent trade announcements from Japan and the EU lifted risk appetite.”

Europe Experiences Three Straight Months Of Inflows

In Europe, ETFs rose by 11 tonnes month-on-month to 1,377 tonnes. Inflows were valued at $1.8 billion, driving cumulative AUMs to $146.1 billion.

UK gold funds continued to dominate inflows, adding seven tonnes of material. At the other end of the scale Germany saw the largest inflows, of four tonnes.

The Council said that “gold’s outsized strength in British pounds (GBP) attracted local investors [as] weaker-than-expected economic data and the cooling labor market, among other factors, kept the local currency on a back foot and contributed to rising safe-haven demand.”

It added that tension around US trade tariffs and growth concerns also drove demand for the safe-haven metal.

The WGC said that a rising opportunity cost of holding gold in Germany contributed to the country’s outflows last month.

It commented that gold outflows were driven by rising Bund yields, “Bund yields kept rising, driven mainly by the country’s surging spending plans, which are pushing up borrowing, and expectations that the ECB may become less dovish.”

Asian Holdings Rose Last Month, Fell Elsewhere

ETFs in Asia recorded a one-tonne inflow in July to push aggregated holdings to 322 tonnes. AUMs rose by $93 million to $34.6 billion.

The WGC commented that “China saw outflows amid local investors’ improving risk appetite,” noting that forecast-beating growth in the second quarter drove boosted investor appetite for riskier assets.

Funds on Mainland China experienced outflows of three tonnes. In India and Japan, holdings rose by one tonne and two tonnes respectively.

In other regions, gold ETFs experienced a two-tonne outflow to slim total holdings to 7o tonnes. Outflows were valued at $95 million, pulling total AUMs to $7.4 billion.