Global physically-backed gold exchange-traded funds (ETFs) have suffered the worst half-year (H1) losses since 2013, the World Gold Council has reported.
Gold ETFs have lost $6.7 billion in the first half of calendar year 2024. During this period. total holdings have dropped by 120 tonnes (-3.9%) to 3,105 tonnes.
The market recorded hefty outflows in markets including Europe and North America, totalling $9.8 billion. Asia emerged as the only region with inflows, attracting a record $3 billion during the first half of 2024, the WGC reported.
Western gold ETF investors did not react as anticipated to the rise in the gold price, the report said. The rise generally drives up investment flows. However, high interest rates and the AI boom have both impacted investor behaviour.
WGC defines gold ETFs as regulated securities that hold gold in physical form.
