Global Gold ETFs Experience Steady Inflows Amid Mixed Regional Performance

Global physically backed gold ETFs saw inflows of USD 1.4 billion in June, marking a second consecutive month of growth. Despite a challenging first half of 2024, regions like Asia outperform with record inflows, while North America faces significant outflows due to various economic factors.

Global physically backed gold ETFs witnessed a significant inflow of USD 1.4 billion in June, the World Gold Council reported. This marked the second consecutive month of positive performance, with most regions recording gains, except North America, which faced slight losses for the second month in a row.

Lower yields and weaker currencies in key areas strengthened gold's appeal to local investors, elevating global gold ETFs' total assets under management (AUM) by 8.8% year-to-date to reach USD 233 billion. Despite this, the first half of 2024 marked a challenging period, with global gold ETFs losing USD 6.7 billion, reminiscent of their worst first half since 2013.

Asia led the performance with record inflows of USD 3 billion, bolstered mainly by China and Japan. However, North America and Europe saw substantial outflows totaling USD 9.8 billion. Confidence in Asian markets was fuelled by falling equities and depreciation in local currencies, driving local investors towards gold.

(With inputs from agencies.)