Monday, September 8, 2025

Global Gold ETFs See Jump in Inflows as Low Prices Entice Investors

Gold prices were at their worst in nearly five years in June, falling by almost 7% after the US Federal Reserve suggested that interest rates may spike by 2023. However, it appears that some investors took gold’s low price as an opportunity to delve into the precious metal market.

According to the World Gold Council, global holdings of gold-backed ETFs rose by 2.9 tonnes in June; however, the inflows into North American and Asian markets were slightly balanced out by outflows from European funds. “Overall, the positive flows came in spite of significant gold price weakness in the latter half of the month on the heels of a relatively hawkish Federal Reserve (Fed) outlook, suggesting that investors may have taken advantage of the lower price level to gain long gold exposure,” explained WGC analysts.

Despite June’s modest upward gain, the WGC noted that investment demand for the bullion was still sluggish in the first half of this year. “Global gold ETFs lost nearly $7 billion in the first half of 2021, as inflows in Q2 could not overcome steep outflows in Q1 when gold prices fell by 10%,” the analysts said in their report. Regionally, the North American market saw gold inflows hit 10.5 tonnes, while European-listed funds reported outflows to the tune of 9.4 tonnes.

Although the first six months of 2021 saw the price of gold struggle to rise by any notable volumes, the WGC continues to remain optimistic that prices will rebound in the second half of the year. “The current macroeconomic environment, as well as anecdotal evidence, indicates remaining upside potential for gold investment this year,” the report stated.

Indeed, markets may have been slightly spooked by the indication of an interest rate spike in two years time, but the monetary policy landscape continues to remain significantly accommodating, which will in turn support a gold price rally throughout the remainder of the year. “Short term, rising rates have created a big of a headwind for gold, but historically, rates are still extremely low,” said WGC head of research Juan Carlos Artigas.


Information for this briefing was found via the WGC. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Avino Q2 Earnings: Steady As She Goes

MEG Energy: Cenovus Comes In With $7.9 BILLION Offer

Orla Mining Q2 Earnings: Musselwhite Changes Everything

Recommended

Goliath Resources Hits 18.58 g/t Gold Over 5.00 Metres At Surebet

ESGold Outlines $24.3 Million NPV For Tailings Reprocessing Project

Related News

Outcrop Gold Drills 1,408 G/T Silver Equivalent Over 1.5 Metres At Santa Ana

Outcrop Gold (TSXV: OCG) released results this morning from its ongoing drilling being conducted at...

Monday, November 16, 2020, 07:25:47 AM

Great Bear Reports Further LP Fault Results, Extends Closing Of $69.9 Million Offering

Great Bear Resources (TSXV: GBR) keeps chugging along with its exploration program at the Dixie...

Tuesday, February 16, 2021, 08:13:13 AM

February Gold Deliveries Already More Than Twice Last Month’s

Gold deliveries at the COMEX have reportedly soared to record levels in early February, with...

Tuesday, February 4, 2025, 10:44:58 AM

Canaccord Revises Estimates For Eldorado Gold, Maintains Ratings

Eldorado Gold (TSX: ELD) reported their second quarter financials recently. The company produced 116,066 ounces...

Monday, August 9, 2021, 04:49:00 PM

Judy Shelton, Backer of Gold Standard, Approved By Senate Banking Committee For Federal Reserve Nomination

Judy Shelton has been approved by the Senate Banking Committee as a nominee for the...

Tuesday, July 21, 2020, 03:31:06 PM