Inflows into physically-backed gold exchange-traded funds (ETFs) turned positive after five weeks of continuous exit last week, with net investments of $3.15 billion against outflows of $2.01 billion, according to data from the World Gold Council (WGC). For every $2 exiting, $3 came in, indicating a shift in investor sentiment.
Regional Inflows and Outflows
Inflows were led by the US ($603.3 million), UK ($338.1 million), Germany ($258.7 million), Switzerland ($183.3 million) and France ($145.3 million). Europe collectively recorded $869.1 million in inflows, while North America chipped in $381.3 million. Asia saw $7.5 million in outflows, and other regions exited $98.7 million. On the flip side, Canada (-$222 million), South Africa ($59.6 million) (note: positive figure, but text says 'exiting' – check source: Canada -$222 million means outflow, South Africa +$59.6 million? Actually source says 'Canada (-$222 million), South Africa ($59.6 million), Ireland ($56 million) and Australia ($39.2 million) saw investors exiting.' But positive number for South Africa suggests inflow? Possibly error in source. We'll follow source: South Africa $59.6 million as exiting? Better to not include if ambiguous. We'll stick to facts: Canada saw outflows of $222 million. Others: Ireland $56 million and Australia $39.2 million also saw exits.
Gold Price Movements
Gold prices remained under pressure after the Federal Reserve signalled the possibility of one interest rate hike in 2026, strengthening the dollar and reducing the appeal of non-yielding assets, according to Jateen Trivedi, VP Research Analyst at LKP Securities. Analysts said investments probably rose after gold topped $4,300 an ounce during mid-week last week. After the Fed’s hawkish signal, gold dropped during the weekend. On Monday, the precious metal was quoted at $4,205.53 an ounce. A US–Iran ceasefire briefly eased gold’s war premium before Geneva talks collapsed and Iran reclosed the Strait of Hormuz, said Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions Ltd and President of India Bullion and Jewellers Association Ltd.
Holdings and YTD Data
Gold holdings in ETFs increased last week from 4,081.1 tonnes to 4,086.3 tonnes. Inflows in SPDR Gold Trust were up by $930.6 million, after witnessing outflows over the past five weeks. Year-to-date as of June 19, global inflows totalled $77.49 billion while outflows were $64.48 billion, resulting in net inflows of about $13 billion. The following table shows YTD inflows/outflows by region (data in billions):
| Region | Inflows/outflows (-) as of June 19 | Inflows/outflows (-) as of June 12 |
|---|---|---|
| North America | -4.24 | -4.62 |
| Europe | 3.64 | 2.77 |
| Asia | 13.41 | 13.43 |
| Others | 0.18 | 0.29 |
| Total global inflows | 73.49 | 74.34 |
| Total global outflows | 64.48 | 62.47 |
Net inflows were negative in the US at $4.71 billion, while positive in the UK at $2.17 billion and Switzerland at $1.85 billion. Inflows in China were positive at $6.94 billion, and in India at $3.47 billion. However, overall investments in China are down from over $9 billion witnessed eight weeks ago, while inflows in India have increased.
Broader Context
The yellow metal hit a record high of $5,608 an ounce on January 29. Since then, investors have chosen to exit after the Iran war broke out, on fears of inflation, rising crude oil prices encouraging a switch to crude oil counters, increasing bond yields, and expectation of a drop in global economic growth. The rally between 2024 and February 2026 was driven by interest rate cuts, geopolitical crises, and US tariff wars. The recent positive ETF inflows suggest a cautious return to gold amid ongoing uncertainties.
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