Gold ETF Holdings Reach Record High Amid Global Economic Uncertainty

Global gold ETF holdings reached a record high of 4,189 tons in August after attracting $18 billion in inflows. This represents the second-largest monthly inflow on record, according to the World Gold Council.

The surge was driven mainly by North American and European funds, with North American gold ETFs adding $7.7 billion and European-listed funds contributing another $7.9 billion, their strongest month on record.

China's central bank also added 20.2 tons of gold in August, its largest monthly purchase since October 2023, pushing China's official holdings to 2,387 tons, an increase for 22 consecutive months.

The People's Bank of China's buying is notable because it nearly doubled the 10-tonne increase recorded in May and pushed gold to roughly 9% of the country's foreign-exchange reserves.