According to a report, global physically backed gold exchange-traded funds (ETFs) saw outflows of approximately $8.9 billion in June, with outflows recorded across all regions. The North American region experienced the largest outflows. Consequently, the total assets under management (AUM) for global gold ETFs fell by 13% to $526 billion, while total holdings decreased by 74 tonnes to 3,047 tonnes. For the first half of the year, global gold ETFs still maintained a net inflow trend, attracting around $8 billion. The Asian region recorded its strongest-ever first-half performance, leading global inflows. North America was the only region to see net outflows, while European gold ETFs achieved robust inflows. Despite the net inflows in the first half, the total AUM for gold ETFs declined by 6% due to falling gold prices, although total holdings saw a slight increase of 18 tonnes.
Regional Overview of Gold ETF Flows and Total Holdings
North American Region
In June, funds in North America saw outflows of about $5.5 billion. For the first half of the year, the region's gold ETFs recorded net outflows of $7.7 billion, marking the weakest first-half performance since 2013. The significant correction in gold prices during the month was a key factor leading investors to reduce their gold ETF allocations. Hawkish signals from the new Federal Reserve Chair (as interpreted by the market), coupled with inflation concerns heightened by US-Iran tensions, fueled expectations for higher future interest rates. This rise in expectations pushed up real yields and strengthened the US dollar, thereby increasing the opportunity cost of holding gold for investors. Looking ahead, gold ETF flows in North America are expected to stabilize. According to the macro market consensus scenario in the Council's "Mid-Year Outlook for the Global Gold Market 2026," gold price performance may be relatively stable in the second half of the year; however, under other scenarios, potential catalysts for a breakout may be brewing. Uncertainties regarding geopolitics, economic growth, and financial markets persist. This backdrop is likely to continue supporting investors' need for portfolio protection, thereby maintaining the investment appeal of gold ETFs as a strategic hedge.
European Region
In June, European gold ETFs experienced outflows of $818 million. Funds in the region's major markets all saw redemptions. The Council believes that weaker gold prices were the primary driver behind investors' net selling of gold ETFs. The European Central Bank raised interest rates by 25 basis points in June, the first increase since September 2023, citing rising inflation concerns amid ongoing US-Iran tensions. This move may have deterred some investors from gold. Listed currency-hedged products in the region continued to see outflows, a phenomenon concentrated mainly in Switzerland due to the depreciation of local European currencies against the US dollar. This further amplified the overall outflow scale for European funds in June. For the first half of the year, the region's net inflows narrowed to $3.2 billion.
Asian Region
In June, Asian gold ETFs saw outflows of approximately $2.3 billion, recording the weakest monthly performance on record. The outflows during the month were primarily from the Chinese market, as rising A-shares boosted investor risk appetite, while a stronger Renminbi amplified the weak performance of gold priced in RMB. The Japanese market also experienced gold ETF outflows in June, as interest rate hikes by the Bank of Japan increased the opportunity cost for local investors holding gold. The Indian market bucked the trend, achieving net inflows as local investors remained optimistic about gold prices and viewed the price correction as an entry opportunity. For the first half of the year, Asia still recorded its strongest-ever first-half performance, leading global inflows with $12 billion in net inflows.
Other Regions
In June, gold ETFs in other regions saw outflows of about $262 million, with Australian funds accounting for approximately $197 million in outflows and South African funds for $36 million. For the first half of the year, other regions recorded net inflows of about $106 million.
Unprecedented First-Half Performance
Trading volume in the global gold market retreated in June. The average daily trading value fell by 13% month-on-month to $373 billion. Over-the-counter (OTC) average daily trading value decreased by 13% to $214 billion, still significantly higher than the 2025 daily average of $180 billion. LBMA average daily trading value dropped by 14% to $187 billion but was 16% higher than the 2025 daily average. Exchange trading volume average daily value declined by 13% to $153 billion. The sole exception was the gold ETF market, where average daily trading value increased by 23% month-on-month to $6.9 billion, reflecting sustained investor trading interest in gold. In the first half of the year, global gold market liquidity surged to record levels, with an average daily trading value of $488 billion, marking the strongest semi-annual average in this data series. Average daily trading values were robust across all market segments, with each setting record highs for the most active semi-annual period. OTC trading, dominated by the LBMA, achieved an average daily value of $249 billion, significantly exceeding 2025 levels and highlighting deep institutional investor participation. Exchange trading volume averaged $227 billion per day, 22% above the 2025 average, benefiting from heightened investor activity. Global gold ETF average daily trading value reached $12 billion, a 73% increase from 2025.
Investors Turn to Gold Amid Macroeconomic and Geopolitical Uncertainty
In June, the total net long position in COMEX gold futures increased. The total net long position in COMEX gold futures rebounded by 16% month-on-month to 538 tonnes, reaching the highest month-end level since January. Notably, since early June, despite persistently weak gold prices, managed money net long positions have been on an upward trend. Analysis of US Commodity Futures Trading Commission (CFTC) positioning data reveals significant divergence among different investor groups: non-reportable net long positions (reflecting retail investor participation) declined in June, while other reportable positions (capturing large trades outside the managed money category) increased by 16% month-on-month. For the first half of the year, managed money net long positions remained broadly stable overall. Managed money net long positions are down only 43 tonnes year-to-date, with investor behavior showing a split pattern: retail investor positioning largely followed short-term price fluctuations, while positioning by large traders has generally remained stable since mid-March.
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