Data from the World Gold Council shows global physical gold ETFs recorded inflows of approximately $3 billion in July, reversing the outflows seen in the previous two consecutive months. Contributions came from all regions worldwide, with European funds leading the inflow figures. Supported by both gold ETF inflows and rising gold prices, the total assets under management (AUM) of global gold ETFs increased by 1% to $530 billion.
Total holdings rose by 23 tonnes to 4,068 tonnes, still below the historical peak of 4,176 tonnes recorded in February 2026. From the start of 2026 through July, cumulative inflows into global gold ETFs reached $11 billion, equivalent to a 39-tonne increase in holdings. Asian gold ETFs continued to lead in inflows, followed by Europe, while North America remained in a net outflow position.
Three Key Drivers Behind July's Gold ETF Resurgence
Diversification demand amid tech stock volatility: Significant pullbacks in semiconductor and trend-sensitive stocks, coupled with the unwinding of crowded positions, may have prompted some investors to reassess portfolio concentration risks and shift toward diversified instruments like gold. Opportunistic dip-buying: Following heavy redemptions in June and several months of price declines, some investors may view gold prices near $4,000 per ounce as an attractive re-entry point. In July, gold ended a four-month losing streak, rising 2%. Policy and geopolitical uncertainty: Unclear Federal Reserve policy prospects, frequent fluctuations in rate expectations, and ongoing US-Iran tensions collectively supported some safe-haven demand. However, high US Treasury yields, a firm US dollar, and the possibility of further rate hikes limited gold ETF inflows, keeping the rebound in the US market relatively modest.
North America Sees Tentative Recovery
In July, North American gold ETFs resumed inflows of $71 million, suggesting only a tentative recovery following two months of outflows. The inflow scale remained insufficient to offset the region's year-to-date outflow position, leaving North America as the only net outflow region globally during this period.
Europe Records Second-Largest Monthly Inflow This Year
European gold ETFs attracted approximately $2 billion in July, marking the second-largest single-month inflow this year. The fund inflows were broad-based, led by the UK and Switzerland, which contributed $875 million and $657 million respectively. Year-to-date, both markets have seen inflows exceeding $2 billion each, totaling around $5 billion combined. European investors appear to be rebuilding positions after June's sell-off, treating lower gold prices as a re-entry opportunity. This mirrors the situation earlier in the year when European funds rebounded first after a US-led mass outflow in March, indicating investors' willingness to add gold ETF holdings following market weakness.
Asia Solidifies Position as Leading Inflow Region
Asian gold ETFs saw inflows of $616 million in July, further cementing the region's status as the largest source of global fund inflows year-to-date. Chinese market inflows led the way, driven by several factors: heightened local safe-haven demand as the CSI 300 Index suffered its worst monthly performance since January 2016; declining local bond yields reduced the opportunity cost of holding gold; and stabilizing gold prices boosted allocation demand. Japanese funds continued to see outflows as rising local bond yields diverted investor interest. India's gold ETFs recorded inflows of approximately $157 million.
Other Regions See Modest Gains
Gold ETFs in other regions posted modest inflows of around $140 million, primarily driven by Australia and South Africa.
Gold Market Trading Volumes Continue to Soften
Global average daily gold trading turnover fell 3.5% month-over-month in July to $356 billion, with OTC daily average turnover declining 3.4% to $205 billion. Trading volumes on the LBMA and Shanghai markets remained above 2025 averages. Exchange-traded volume saw daily average turnover drop 2.6% to $146 billion, possibly reflecting gold price volatility gradually returning to normal levels. Gold ETF market daily average turnover fell 29.1% month-over-month to $5 billion.
In July, total net long positions on COMEX gold futures declined 4.4% to 542 tonnes. Managed funds showed early signs of rebuilding positions, adding 11 tonnes, while other reportable positions saw net longs reduce by 36 tonnes during the month, offsetting the former's increase. Overall, positioning remained near neutral levels as gold continued to be influenced by Middle East conflicts, which reinforced inflation risks and supported stronger US dollar and Treasury yields, thereby increasing the opportunity cost pressure of holding gold.
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