Global Gold ETFs Experience Fourth Consecutive Month of Inflows in August, Reports WGC According to Reuters

Gold ETFs Experience Continued Inflows Amid Market Changes

LONDON – According to the World Gold Council, global physically backed gold exchange traded funds (ETFs) experienced their fourth consecutive month of inflows in August, primarily driven by increased holdings from funds listed in North America and Europe.

Gold ETFs, which retain physical bullion for investors, represent a significant aspect of investment demand for gold. The precious metal reached a record high of $2,531.60 per ounce on August 20, fueled by expectations of upcoming interest rate cuts in the U.S.

Despite this recent surge in inflows, gold ETFs had faced three consecutive years of outflows due to elevated global interest rates. The recent inflows have managed to reduce year-to-date losses to a net outflow of 44 metric tons.

In August alone, gold ETFs welcomed inflows of 28.5 tons, equivalent to $2.1 billion, raising their total holdings to 3,182 tons. The rise in gold prices and fresh inflows contributed to a peak in total assets under management, reaching $257.3 billion by the end of August.

The World Gold Council also noted a 3.2% decline in global gold trading volumes in August, averaging $241 billion per day, largely attributed to reduced activity on COMEX. Conversely, trading volumes in the opaque over-the-counter market increased by 5.9% to $158 billion.

With gold prices up 21% this year and growing expectations of U.S. rate cuts, speculators boosted their total net long position on COMEX by 17% from July, reaching 917 tons by the end of August—marking the highest level since February 2020.