According to the World Gold Council (WGC) Gold ETF Flows report, July saw the highest monthly inflow of gold investment from global gold ETFs since April 2022. All major “sharks” participated in gold investment.

Global gold ETFs recorded their third consecutive month of inflows into gold, adding $3.7 billion to bullion in July. Total holdings rose 48 tonnes to 3,154 tonnes as of the end of July, WGC analysts said.

World gold prices increased by 4% last month, along with additional gold purchases, causing the assets of these funds to increase by 6% to 246 billion USD.

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Funds pour money into gold investment. Photo: Kitco

Western gold ETFs were the biggest contributors. The region recorded inflows into gold for three consecutive months, reaching $1.2 billion in July, the strongest since March 2022. British and Swiss funds were the top net buyers of gold.

In Europe, government bond yields fell, which made ETFs more interested in gold.

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Gold flows from ETFs. Photo: Kitco

According to WGC, major fluctuations in the race for the White House, including the attempted assassination of Mr. Trump, Mr. Biden's withdrawal from the presidential race, etc., have caused the gold market to "heat up". Demand for safe-haven gold has increased sharply, with gold ETFs witnessing strong cash flows into buying gold in about two days.

Meanwhile, inflation has fallen, the labor market has cooled, and the US Federal Reserve (Fed) is likely to cut interest rates as early as September. US Treasury yields have fallen and the US dollar has weakened, pushing gold prices higher. At the same time, it has boosted investor interest in gold ETFs.

WGC analysts said that the volatility in stocks, especially in the second half of July, also supported demand for gold ETFs.

Despite high prices, Asian funds were net buyers of gold for the 17th straight month, adding $438 million in July, led by India. Chinese and Japanese funds also saw strong purchases as stock markets weakened and domestic gold prices rose.

Recently, some forecasts have said that whichever candidate, Donald Trump or Kamala Harris, becomes the US president and the owner of the White House, will also increase money pumping to support the economy. Gold will benefit from this move.

Several major banks in the world still maintain their forecast that gold prices will reach $2,500/ounce this year.