Gold ETF Flows Reach Record High as Investors Flock to Safe-Havens
Global investors increased their gold holdings in August by adding $18 billion to gold-backed exchange-traded funds (ETFs), marking the second-largest monthly inflow on record. This surge in demand pushed the total assets under management (AUM) of global gold ETFs up 16% month-over-month (m/m) to a new high of $615 billion, with holdings rising by 121 tonnes to a record 4,189 tonnes.
The increase in gold price and strong inflows drove the rebound in market activity, with average daily trading volumes across all major segments increasing by 21% m/m. North American- and European-listed funds led the charge in August, accounting for most of the new inflows into gold ETFs.
August saw a significant surge in gold market activity, with investors seeking safe-haven assets amid market volatility. The SPDR Gold Shares ETF (GLD) and other major gold-backed ETFs saw substantial inflows, reflecting the growing popularity of gold as a hedge against inflation and economic uncertainty.