Global gold ETF flow subdued in June at 2.9 tonne

Flows into global gold ETFs were mostly flat in June, with slight inflows of 2.9 tonne, worth $191 million.

A report by World Gold Council (WGC) said that inflows into North American and Asian funds were primarily offset by outflows from European funds.

"Overall, the positive flows came in spite of significant gold price weakness in the latter half of the month on the heels of a relatively hawkish Federal Reserve (Fed) outlook, suggesting that investors may have taken advantage of the lower price level to gain long gold exposure," it said.

Global Assets Under Management (AUM) stands at 3,624 tonne ($206 billion), approximately 7 per cent shy of the October 2020 record high of 3,909 tonne.

US funds, as well as low-cost gold ETFs in Europe, were the primary source of inflows, while larger European funds, particularly in the UK and Germany, led outflows. North American funds added 10.5 tonne ($646 million) in contrast to European funds, which saw outflows of 9.4 tonne.

Low-cost gold ETFs contributed $222 million (3.8 tonne) to the combined flows seen in North America and Europe.

Asian-listed funds reversed a recent trend to post inflows of 1.7 per cent (2.3 tonne, $136 million) supported by positive flows in India and China, while fund flows in 'Other' regions fell by 0.8 per cent.

After dropping 6 per cent in the second week of June following the Federal Open Market Committee meeting, gold finished the month 7.2 per cent lower at $1,763 per ounce, erasing price gains from May.

Gold daily trading averages fell during June to $163 billion per day compared to $176 billion in May, led by lower COMEX volumes. Trading volume during the month remained in line with the year-to-date average of $165 billion per day, but below the 2020 average of $183 billion.