Global investors pared back their exposure to physically-backed gold ETFs in June, although strong buying earlier in the year ensured the asset class still recorded positive net inflows across the first half of 2026.
According to the World Gold Council’s (WGC) latest Gold ETF Commentary, physically backed gold ETFs recorded outflows of US$8.9 billion ($12.8 billion) during June as investors withdrew funds across every region.
Total assets under management fell 13 per cent during the month to US$526 billion, while collective holdings declined by 74 tonnes to 4,047 tonnes.
Despite the monthly retreat, global gold ETF flows remained positive at US$8 billion for the first six months of the year, driven largely by record inflows from Asia. Europe also attracted healthy inflows over the period, while North America was the only region to record net outflows across the half.
Australian gold ETFs recorded US$197 million in outflows during June but Australia still finished the first half with net inflows of US$116.9 million.
Lower gold prices contributed to a 6 per cent decline in total assets under management during the first half, even as holdings edged 18 tonnes higher.
North American-listed funds accounted for the largest share of June’s withdrawals, shedding US$5.5 billion and bringing first-half outflows to US$7.7 billion, the region’s weakest opening six months since 2013.
The WGC attributed the selling to a pullback in gold prices, hawkish signals from the new US Federal Reserve chair and inflation concerns stemming from the US-Iran conflict, which lifted expectations for higher interest rates, increasing the opportunity cost of holding gold.
The council said demand for gold ETFs could become more stable in the second half of the year.
“Looking ahead, regional gold ETF flows could stabilise. The macro consensus scenario in our 2026 Mid-Year Gold Outlook suggests relatively stable gold performances in H2, with potential catalysts possibly brewing a breakout in other scenarios.”
“Meanwhile, uncertainties surrounding geopolitics, economic growth and financial markets linger. This backdrop may continue to support investor demand for portfolio protection and sustain interest in gold ETFs as a strategic safe-haven allocation.”
Asian funds recorded their worst month on record in June with US$2.3 billion in outflows, largely driven by Chinese investors rotating back into equities as gold prices weakened.
Nevertheless, the region remained the strongest contributor globally over the first half, attracting a record US$12 billion in inflows. India stood out by bucking the broader regional trend, drawing fresh investment as investors viewed the price decline as a buying opportunity.
Although trading activity across the broader gold market eased in June, average daily liquidity for the first half reached a record US$488 billion, the highest semi-annual average on record.
Gold ETF trading also remained elevated, averaging US$12 billion per day during the first half, up 73 per cent on 2025, as investors continued to use the asset class amid heightened macroeconomic and geopolitical uncertainty.
