A. SREENIVASA REDDY (ABU DHABI)
Global gold Exchange Traded Funds (ETFs) assets under management (AUM) reached $526 billion by the end of June, a 6% decline in the first half of 2026 due mainly to lower gold prices, the World Gold Council (WGC) said in its June update. Collective holdings, however, rose by 18 tonnes to 4,047 tonnes during the first six months of the year, indicating that investors remained net buyers of gold ETFs despite the fall in prices.
The WGC said physically backed gold ETFs recorded outflows of $8.9 billion in June, extending the trend of investors trimming their holdings during the month. Global holdings fell by 74 tonnes in June, with outflows reported across all regions, led by North America.
Even so, net inflows for the first half remained positive at $8 billion, driven by strong buying earlier in the year, particularly in Asia, while Europe also posted healthy inflows.
North America was the only region to record net outflows during the first half.
Asia remained the standout performer despite suffering its worst monthly outflows on record in June. Regional funds saw $2.3 billion of outflows during the month, mainly due to selling by Chinese investors as stronger equity markets and lower gold prices improved risk appetite.
Nevertheless, Asia posted its strongest first half on record, attracting $12.4 billion of inflows and leading all regions in ETF demand. India bucked the regional trend, recording inflows during June as investors viewed the decline in gold prices as a buying opportunity.
North American funds lost $5.5 billion in June, taking first-half outflows to $7.7 billion, the weakest first-half performance since 2013. The WGC attributed the selling to the decline in gold prices, expectations of higher US interest rates following hawkish policy signals, and a stronger US dollar, all of which raised the opportunity cost of holding gold.
European funds also experienced outflows of $818 million in June, although they retained $3.2 billion of net inflows for the first half.
Despite the June weakness, the WGC said the broader trading environment remained robust. Average daily global gold market trading volumes eased 13% month-on-month to $373 billion in June as activity moderated across over-the-counter and exchange-traded markets. Gold ETF trading was the exception, with average daily turnover rising 23% from May to $6.9 billion, reflecting continued investor interest.
For the first half as a whole, global gold market liquidity reached a record average of $488 billion per day, the highest semi-annual level in the WGC's data series.
Average daily gold ETF trading surged 73% year-on-year to $12 billion, largely fuelled by increased activity in US-listed funds as investors continued to use gold as a hedge against macroeconomic and geopolitical uncertainty