Global investors pour $18 billion into gold ETFs in August, led by North America, Europe: WGC
Global trading volumes rose 21 percent month-on-month to an average of US$430 billion a day, while gold ETF trading volumes jumped 83 percent to US$8.7 billion per day.
The UK was the biggest source of European inflows, attracting US$4.4 billion
Global investors sharply increased allocations to gold-backed exchange-traded funds (ETFs) in August, with funds attracting US$18 billion during the month, led by North American- and European-listed products, according to the World Gold Council’s Gold ETF August 2026 report.
The report said, “Global gold backed ETFs added US$18bn in August, marking the second-largest monthly inflow in value terms on record.” The surge was driven primarily by funds listed in North America and Europe, with both regions registering among their strongest monthly inflows.
The strong inflows, combined with a higher gold price, pushed global gold ETF assets under management (AUM) up 16 percent month-on-month to US$615 billion. Collective holdings increased by 121 tonnes to 4,189 tonnes, the highest level on record, the report said.
North American funds attracted US$7.7 billion in August, marking their third-largest monthly inflow on record. The World Gold Council said demand was relatively modest at the beginning of the month before accelerating sharply during the week of August 17.
“Funds added roughly US$4bn, or more than half of the month’s total inflow, in just five trading days,” the report said. The strong August inflow also helped offset the region’s record US$13 billion outflow in March, bringing North American fund flows back into positive year-to-date territory.
European gold ETFs saw slightly higher inflows of US$7.9 billion, their strongest month on record. The report attributed demand partly to concerns around fiscal sustainability and elevated sovereign borrowing costs.
“Against this backdrop, gold’s role as a portfolio diversifier and an alternative to sovereign debt likely remained an important driver of demand,” it said. Investors also appeared to view the summer correction in gold as an opportunity to rebuild strategic positions rather than reduce exposure.
The UK was the biggest source of European inflows, attracting US$4.4 billion, its second-largest monthly inflow on record. France added US$1.5 billion, its strongest monthly inflow on record.
Asian-listed gold ETFs attracted US$2 billion in August, their strongest month since February. China accounted for most of the regional inflows, while India and Japan also recorded modest buying.
What factors supported the ETF demand?
The report identified three developments that likely supported the acceleration in global ETF demand- concerns around yen intervention and currency policy, heightened fiscal and Treasury-market concerns, and momentum from gold’s rally above key technical levels.
Gold-market activity also rebounded. Global trading volumes rose 21 percent month-on-month to an average of US$430 billion a day, while gold ETF trading volumes jumped 83 percent to US$8.7 billion per day.
Year-to-date through August, global gold ETF inflows stood at US$29 billion, equivalent to a 160-tonne increase in holdings.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.