Investors pulled $8.9 billion from gold exchange-traded funds (ETFs) in June, with North American products accounting for $5.5 billion of the withdrawals as bullion’s price slide deepened.
The monthly retreat came as gold recorded its fourth straight losing month. The metal fell 11.7% as a hawkish Federal Reserve and Middle East tensions steered investors away from the metal.
Gold ETF Outflows Accelerated in June
According to the World Gold Council report, total assets under management fell 13% to $526 billion in the month. In addition, holdings dropped 74 tonnes to 4,047 tonnes. The selling followed a sharp price pullback that reset investor allocations.
During the month, New Fed Chair Kevin Warsh signaled a hawkish stance, and the US-Iran conflict lifted inflation fears. Together, they raised expectations of higher rates ahead. Rising real yields and a stronger dollar increased the opportunity cost of holding non-yielding gold.
North American funds recorded $7.7 billion in outflows across the first half, the region’s weakest start to a year since 2013. European funds lost $818 million in June after the European Central Bank hiked rates 25 basis points, its first increase since September 2023.
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Gold ETFs Flows. Source: World Gold CouncilMarkets outside the big three regions also turned negative. Combined outflows totaled $262 million in June, bringing their 2026 net buying to $106 million. Australia accounted for most of that drop at $197 million, and South Africa gave up $36 million.
“Looking ahead, regional gold ETF flows could stabilise…Meanwhile, uncertainties surrounding geopolitics, economic growth and financial markets linger. This backdrop may continue to support investor demand for portfolio protection and sustain interest in gold ETFs as a strategic safe-haven allocation,” the report read.
A Positive First Half Despite the June Drop
Nonetheless, global flows were still positive at $8 billion over the first half of 2026. Asia led with $12 billion in additions, its strongest first half on record. That came despite a $2.3 billion June outflow, the region’s worst month ever, driven mainly by Chinese funds.
India bucked the trend, drawing inflows as local investors treated the price dip as an entry point. Collective global holdings rose 18 tonnes across the half, though assets under management fell 6% on the lower price.
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