Global gold-backed exchange-traded funds (ETFs) experienced a second month of inflows in June, according to the World Gold Council (WGC). Total fund holdings rose by around 18 tonnes last month, to 3,106 tonnes, with inflows totaling $1.4 billion, bringing assets under management (AUMs) to $233 billion.
Despite the positive trend in June, the first half of the year marked the worst performance for global ETFs since 2013, with outflows totaling 120 tonnes or $6.7 billion. Europe and North America saw significant outflows, while Asia was the only region with inflows during this period.
In North America, the world's largest gold ETF market, holdings dropped by eight tonnes to 1,565 tonnes, with total AUMs at $117 billion. The region experienced outflows of $4.9 billion in the first half of the year, the highest in three years, attributed to factors such as dollar strength and equity market rallies.
European ETFs added 18 tonnes of gold in June, reaching a total of 1,303 tonnes, with AUMs increasing to $98 billion. Lowering yields, falling equities, and political uncertainties contributed to inflows in the region, despite experiencing the worst first half in 11 years with outflows of $8 billion.
Asian gold-backed ETFs saw a seven-tonne inflow in June, reaching a total of 179 tonnes, with AUMs at $14 billion. Factors such as stock market weaknesses and currency depreciation in China drove inflows in the region, resulting in the highest recorded inflows of 41 tonnes in the first half of the year.
Overall, the global gold-backed ETF market showed resilience in June, with varying trends across different regions. While North America faced challenges, Europe and Asia experienced positive momentum, driven by factors such as central bank policies, market uncertainties, and currency fluctuations.
