Gold Market Sees Rebound as Investors Add Diversification

The gold market saw positive exchange-traded fund (ETF) inflows in July after two months of outflows, according to data from the World Gold Council. The council's monthly ETF report showed that global gold ETFs added 23.5 tonnes, valued at $2.965 billion.

This marked a reversal of two months of outflows and reflected investors taking advantage of lower gold prices to add diversification to their portfolios. European-listed ETFs drove the inflows last month, with analysts noting that buying was broad-based but led by the UK and Switzerland.

Asian demand slowed in July, but the region's activity reinforced its position as the largest contributor to global inflows. Asian-listed ETFs saw inflows of 4.8 tonnes, valued at $616 million, with China leading the gains due to safe-haven demand.