Up until July, western investors had largely abandoned gold ETFs in 2024. Some took profits amid record gold price levels, while others favored interest-bearing assets, which have been supported by high interest rates.
The council’s July data shows a reversal, with global gold ETFs experiencing their strongest month since April 2022.
Inflows topped US$3.7 billion for the month, the third month in a row of inflows for gold ETFs. Western investment took the lead, with more than US$2 billion entering the market from North America and US$1.2 billion from Europe.
Although outflows have erased 72 metric tons (MT) from the world’s gold ETF holdings year-to-date, the World Gold Council notes that the higher gold price has narrowed global losses to US$3 billion.
In July, North American gold ETF holdings rose 25.7 MT to hit 1,590.6 MT, while European gold ETF holdings saw an increase of 16.6 MT to reach 1,319.3 MT. Demand in Asia continued to remain positive, with 5.3 MT added to holdings, a monthly increase of 3 percent. Overall, the US led the way with a monthly increase of 25.6 MT.
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
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