August 7, 2026
Gold ETFs saw a marked turnaround in July: after two months of outflows, these physically backed, exchange-traded funds began attracting capital once again. According to data from the World Gold Council (WGC), global holdings rose by 23.5 tonnes (just under US$3 billion). This development signals a return of investor interest and coincided with the end of the gold price’s four-month losing streak; the price has since risen above the US$4,200 mark once again.
Return of tactical buyers and a cautious North America
The WGC believes that market participants used the previously lower gold prices, close to US$4,000 per ounce, as an entry point to re-enter the market and diversify their portfolios. This led to a rise of around 2 per cent in the gold price in July.
Whilst inflows were broadly supported globally, the recovery in North America was extremely subdued, with an increase of just 0.3 tonnes (US$71 million). This modest growth was not sufficient to significantly reduce the year-to-date deficit. North America therefore remains the only region to record net outflows so far this year.
Europe dominates in July, Asia remains the strongest driver for the year
The global build-up in holdings was led by European investors. Gold ETFs listed in Europe recorded inflows of 17.3 tonnes (US$2 billion) in July, marking the second-strongest month of the year for this region. Demand was particularly strong in the UK and Switzerland, which together have attracted around US$5 billion since the start of the year. The WGC recognises a cyclical pattern here: as earlier in the year, European investors deliberately rebuilt their positions following periods of significant market weakness.
In Asia, although demand slowed in July, it remained on a growth trajectory with an increase of 4.8 tonnes (US$616 million). China led the regional gains, driven by a search for ‘safe havens’ following sharp falls in the stock market and falling local yields. Whilst India recorded moderate inflows, Japanese ETFs suffered outflows due to rising local yields.
Overall, the market is showing a shift in momentum: since the start of the year, global net inflows into gold ETFs have totalled US$11 billion (39 tonnes). Despite a strong July in Europe, Asian funds remain the biggest driver of ETF holdings in the year to date.
Source：https://goldinvest.de/en/gold-etfs-europe-leads-turnaround-following-two-month-slump
