Inflows into gold ETFs turned positive last week after 5 ...

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Inflows into physically-backed gold exchange-traded funds (ETFs) turned positive after five weeks of continuous exit last week, though there was a $2 exit for every $3 inflow, data from the World Gold Council (WGC) showed.

According to WGC, ETF investments totalled $3.15 billion, while outflows totalled $2.01 billion. The 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).

Canada (-$222 million), South Africa ($59.6 million), Ireland ($56 million) and Australia ($39.2 million) saw investors exiting.

Under pressure

Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions Ltd, and President of India Bullion and Jewellers Association Ltd, said a US–Iran ceasefire briefly eased gold’s war premium before Geneva talks collapsed and Iran reclosed the Strait of Hormuz.

Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said 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 such as gold.

Analysts said investments probably rose after gold topped $4,300 an ounce during mid-week last week. After the US Fed’s hawkish signal, gold dropped during the weekend. On Monday, the precious metal was quoted at $4,205.53 an ounce.

Europe leads

Last week, investments in Europe at $869.1 million led the inflows in gold ETFs, with North America chipping in with $381.3 million. Asia witnessed $7.5 million outflows, while investors in other regions exited to the tune of $98.7 million.

As of June 19, global inflows totalled $77.49 billion, while outflows were $64.48 billion. Net inflows were negative in the US at $4.71 billion, while they were $375.5 million in France. Investments were positive in the UK at $2.17 billion, while Switzerland followed at $1.85 billion.

Inflows in China were positive at $6.94 billion, and in India at $3.47 billion. But overall investments in China is down from over $9 billion witnessed eight weeks ago, while inflows in India have increased.

Holdings rise

Gold holdings in ETFs increased last week from 4,081.1 tonnes to 4,086.3 tonnes.

Inflows in SPDR Gold MinesShares Trust were up by $930.6 million, after witnessing outflows over the past five weeks.

Inflows in gold ETFs surged after the yellow metal hit a record high of $5,608 an ounce on January 29. However, investors have chosen to exit after the Iran war broke out, on fears of inflation, rising crude oil prices (encouraging investors to switch to crude oil counter), increasing bond yields and expectation of a drop in global economic growth.

The yellow metal witnessed a stupendous rally between 2024 and February 2026 as it was seen as a haven asset due to interest rate cuts by central banks, geopolitical crisis and US tariff wars with various countries.

*Year-to-date as of June 19

Source: WGC