Global gold exchange-traded funds (ETFs) have recorded their strongest inflows since April 2022. According to the World Gold Council (WGC), these inflows were primarily driven by North American and European funds. The demand for gold has increased, reflecting the economic and political uncertainty that continues to shape global markets.
North America Leads the Surge
In July, North American gold ETFs saw $2 billion in new investments. This growth reversed the minor outflows experienced in May and June. The surge was fueled by safe-haven demand, which was sparked by political uncertainties and the anticipation of easing monetary policies. Despite these recent inflows, the year-to-date numbers show that North American gold ETFs have experienced net outflows totaling $2.9 billion, with holdings decreasing by 52 tonnes.
European Gold ETFs Also See Gains
European gold ETFs followed closely behind, adding $1.2 billion in July. This marked the third consecutive month of positive inflows for the region. The rise in investments was supported by declining bond yields and expectations of further monetary easing by the European Central Bank and the Bank of England. As a result, the assets under management (AUM) for European gold ETFs increased by 12%, reaching $103 billion.
Asian Gold ETFs Shine
Asian gold ETFs also contributed to the global increase, with India leading the charge. In 2024, Asian funds have attracted $3.6 billion in inflows, the highest among all regions. The total AUM for Asian gold ETFs has now reached a record $15 billion.
Conclusion
The global demand for gold-backed ETFs reflects a broader trend of seeking safe-haven assets amid uncertainty. As markets continue to react to political and economic developments, gold ETFs are likely to remain a key investment choice.
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