Global gold ETFs drew $18 billion in August, their second-largest monthly inflow on record, while worldwide holdings climbed to an all-time high of 4,189 tonnes.
Key Points:
- Global gold ETF inflows reached $18 billion in August, the second-highest monthly total on record.
- Holdings rose by 121 tonnes to a record 4,189 tonnes, while assets under management increased 16% to $615 billion.
- European funds led regional demand with $7.9 billion, followed closely by North America with $7.7 billion.
Gold ETF Demand
The World Gold Council reported the August figures this week, showing that strong inflows and a higher gold price lifted total assets under management to $615 billion. Holdings increased by 121 tonnes during the month, while year-to-date inflows reached $29 billion, equal to about 160 tonnes of additional demand.
North American funds took in $7.7 billion, their third-biggest month on record, after demand accelerated sharply during the week of Aug. 17. About $4 billion entered those funds in five trading days, helping offset the region’s record $13 billion outflow in March.
Europe recorded the largest regional inflow, attracting $7.9 billion in its strongest month on record.
UK-listed funds contributed $4.4 billion, their second-largest monthly total, while France added a record $1.5 billion. Asian funds added another $2 billion, their best month since February, with China again leading the region as local gold prices stabilized and rebounded.
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Market Demand Drivers
The Council said the August surge likely reflected a combination of currency-policy concerns, Treasury market developments and price momentum. It pointed to U.S. intervention supporting the yen on Jul. 31, the Treasury’s Aug. 19 debt buyback move and stronger buying after gold cleared important technical levels.
Trading activity strengthened alongside fund demand.
Average daily gold-market volume rose 21% from July to $430 billion, while ETF trading volume jumped 83% to $8.7 billion per day, with North American funds responsible for more than 73% of that activity. Total COMEX net long positions rose 39%, or 212 tonnes, to 753 tonnes, while managed money added 96 tonnes and lifted its net longs to 470 tonnes.
The August surge followed a broader turn higher in global ETF flows that had already begun in July. By Aug. 31, year-to-date inflows stood at $29 billion, equal to 160 tonnes, while total holdings had reached the new 4,189-tonne record.
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