According to the World Gold Council (WGC) Gold ETF Flows report, July saw the highest monthly inflow of gold investments by global gold ETFs since April 2022. All the major investors participated in gold trading.

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

Global gold prices rose 4% last month, and coupled with further gold purchases, the assets of these funds increased by 6% to $246 billion.

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Funds are pouring money into gold investments. Photo: Kitco

Western gold ETFs contributed the most. The region recorded inflows into gold for three consecutive months, reaching $1.2 billion in July, the strongest level since March 2022. Funds from the UK and Switzerland led net gold purchases.

In Europe, government bond yields have fallen, making gold more attractive to ETFs.

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Gold flows from ETFs. Photo: Kitco

According to the WGC, major shifts in the White House race, including the attempted assassination of Trump and Biden's withdrawal from the presidential race, have heated up the gold market. Demand for gold as a safe haven has surged, and gold ETFs have seen a strong inflow of money into gold purchases over the past two days.

Meanwhile, inflation is falling, the labor market is cooling, and the Federal Reserve (Fed) is likely to cut interest rates as early as September. US Treasury yields are falling and the US dollar is weakening, pushing gold prices to higher levels. This is also boosting investor interest in gold ETFs.

WGC analysts believe that stock market volatility, particularly in the latter half of July, also supported demand for gold ETFs.

Despite high prices, Asian funds continued their net buying of gold for the 17th consecutive month, increasing by $438 million in July, with India leading the way. Chinese and Japanese funds also saw significant increases in gold purchases amid weak stock markets and rising domestic gold prices.

Recently, some forecasts have suggested that whichever candidate, Donald Trump or Kamala Harris, becomes the US president, the occupant of the White House will aggressively inject money to support the economy . Gold will benefit from this move.

Several major banks around the world are maintaining their forecasts that the price of gold will reach $2,500 per ounce this year.