Investments in physically-backed gold exchange-traded funds (ETFs) have turned negative once again, with significant withdrawals reported from US and Chinese investors, according to data from the World Gold Council (WGC).
This marks the second consecutive week of negative inflows in Asia, particularly China. The outflows were substantial, totaling over $600 million, with the US witnessing $635 million and China $623 million in withdrawals.
The WGC’s recent data indicates that last week, inflows into the ETFs reached $1.09 billion, while outflows totaled $2.17 billion. For the year-to-date period, net investments have decreased to $18.46 billion, down from $19.54 billion the previous week.
As gold prices dropped below $4,600 an ounce last week, exits from the ETFs resumed. The price of gold has fallen nearly 3 percent this month. The trend of higher outflows has been noted since the outbreak of the conflict in Iran.
Gold peaked at a record high of $5,608 an ounce on January 29. Since then, it has experienced a downward trajectory, shedding 19 percent in value, with Monday’s quotation at $4,560 an ounce.
Last week, outflows were predominantly observed in North America at $617.5 million and Asia at $629.4 million. In contrast, Europe saw inflows of $211 million, while other regions experienced outflows of $43.3 million.
In addition to the US and China, other countries that experienced investor exits included Australia ($28.1 million), France ($20.2 million), South Korea ($12.1 million), and Turkey ($15.2 million). Data concerning investments from India was not available.
Year-to-date net investments in the US remained negative, increasing to $1.56 billion from $925.2 million. Meanwhile, the UK maintained positive inflows of $2.13 billion, and Switzerland reported an increase to $1.90 billion.
In China, net investments declined to $8.20 billion, down from $8.83 billion in the previous week. In this region, net investments amounted to $1.26 billion, with $0.93 billion recorded in the Special Administrative Region of Hong Kong.
Despite the fluctuations, ETFs currently hold 4,130.7 tonnes of gold compared to 3,540.5 tonnes a year ago, though this is a decrease from 4,319.4 tonnes the week prior.
The decline in gold prices has been attributed to fears surrounding inflation, anticipated interest rate hikes, and rising bond yields following the onset of the Iran war. Between 2024 and January 29 this year, gold experienced a steady increase, driven by expectations of a rate cut by the US Federal Reserve, US trade disputes, and geopolitical crises.
Published on May 25, 2026
