World Gold Council: In August, global gold ETFs attracted a record high of 18 billion US dollars in holdings

The Zhitong Finance App learned that the latest data from the World Gold Council shows that in August of this year, global gold ETFs attracted capital inflows of 18 billion US dollars, making it the second largest monthly inflow in the history of this product. This wave of capital was mainly driven by funds listed in North America and Europe. Among them, the North American market recorded the third-largest monthly inflow in history, and the European market performed even stronger, setting a new record for monthly inflows.

Driven by continued capital inflows and rising gold prices, the total asset management scale of global gold ETFs increased 16% month-on-month to reach 615 billion US dollars; total holdings increased 121 tons to 4,189 tons, which also reached a record high.

Extending the time dimension from the beginning of the year to the present, the cumulative capital inflow of global gold ETFs has reached US$29 billion, which is equivalent to a net increase of 160 tons in total holdings. In terms of regional contributions, Asian listed funds are still the largest source of global capital inflows, followed by Europe. Driven by the strong performance of the North American market in August, capital flows have changed from negative to positive since the beginning of the year, but the region is still the only major market where net demand has not yet returned to the same period last year. It was mainly dragged down by large-scale capital outflows in March, and is still recovering.

Chart 1: Western investors have returned on a large scale, and their holdings have reached a record high

Regional Overview

Global gold ETF inflows accelerated sharply in August, possibly reflecting three related developments:

Yen intervention and foreign exchange policy concerns: The US intervention to support the yen on July 31 may continue until the beginning of August, heightening concerns about broader policy intervention in the currency market.

Fiscal and treasury market concerns have intensified: rising long-term yields and the intervention of the US Treasury Department on August 19 have heightened concerns about fiscal sustainability and dominance, while also rekindling concerns about the depreciation of the dollar.

Momentum strengthens the flow: As gold rebounds and breaks through key technical levels, price momentum may attract additional tactical and institutional demand.

North American funds attracted $7.7 billion in August, the third-largest monthly inflow on record. Demand was relatively mild at the beginning of the month, but accelerated sharply during the week of August 17. Capital increased by about $4 billion in just five trading days, accounting for more than half of the month's total inflow. The timing of these flows appears to be consistent with the drivers described above. Notably, strong capital inflows in August helped offset the region's record outflow of $13 billion in March, bringing North American capital flows back to a positive year-to-date range.

European gold ETFs continued to dominate global capital inflows in August, with massive purchases of $7.9 billion — the strongest month in the region's record. In addition to the many factors underpinning demand in North America, European investors also face continuing concerns about fiscal sustainability and rising sovereign borrowing costs. In this context, gold is likely to remain an important driver of demand as a tool for portfolio diversification and an alternative to sovereign debt. The continuation of strong buying after the July rebound also shows that investors are increasingly seeing summer adjustments as an opportunity to rebuild strategic positions rather than reduce risk exposure.

The UK ($4.4 billion) remains the region's main source of inflows, recording the second-highest monthly inflow on record (Chart 2). Meanwhile, France added $1.5 billion this month, the highest in history, further highlighting the breadth of investor demand in the region.

Asian funds rose by $2 billion in August, the strongest month since February. China once again dominates regional capital inflows, and the stability and rebound of local gold prices has attracted investor interest, keeping the market ahead, and is expected to surpass the record capital inflow year in FY2025. Continued decline in local government bond yields and range-bound fluctuations in the stock market may provide additional support. India and Japan also recorded moderate capital inflows, thanks to improved gold price performance.

Gold ETFs listed in other regions continued to attract capital inflows in August, adding $234 million. This demand comes mainly from Australia, which contributed $190 million in regional capital inflows.

Chart 2: Full return of European investors

Trading volume rebounded across the board, and market liquidity improved significantly

Global gold market trading volume rebounded in August, rising 21% month-on-month to an average of US$430 billion per day. There has been an increase in activity in all major market segments. OTC trading volume rose 10% month-on-month to US$226 billion, supported by LBMA activity, rising 11% month-on-month to US$1990 billion, and far higher than the 2025 average.

Exchange liquidity surged 33%, averaging US$1950 billion per day, mainly led by COMEX traded gold derivatives (+28%) and the Shanghai Futures Exchange (+48%). Global gold ETF trading volume rose 83% month-on-month to US$8.7 billion per day, mainly driven by North American listed funds, which account for more than 73% of ETF trading activity.

The improvement in liquidity in the global gold market is also reflected in tonnage, albeit to a lesser extent. The average daily trading volume reached 3,021 tons in August, up 11% from the previous month, and all major market segments showed increased activity.

Position data showed strong growth in COMEX's net long volume, rising 39% (+212 tons) to 753 tons this month. The number of managed currencies increased by 96 tonnes, and the net longevity reached 470 tonnes, surpassing the peak of 443 tonnes from the beginning of the year. Other reportable net long positions also increased by 115 tons to 283 tons, entering the last week at the end of the month. Furthermore, in the 11COMEX net outstanding contract, gold options reached a two-year high at the end of July. Despite a slight correction, the price was still far higher than the January and February levels.

Chart 3: Trading volume rebounded, increasing liquidity in the gold market