Gold ETFs Soar as Investors Flock to Safe-Haven Assets

Global gold-backed exchange-traded funds (ETFs) saw their second-highest monthly inflow in August, with investors pouring $18 billion into these safe-haven assets.

The World Gold Council reported that North American and European-listed ETFs led the charge, with North America recording its third-largest monthly inflow at $7.7 billion and Europe experiencing its biggest-ever monthly inflow of $7.9 billion.

Asian funds also saw strong demand, adding $2 billion in August, the highest monthly inflow since February, driven mainly by China where improving local gold prices encouraged investors.

The WGC said that North American demand accelerated sharply during the week of August 17, when investors added around $4 billion to gold ETFs in just five trading days, supported by factors such as US intervention to support the yen and rising long-term bond yields.