Global gold ETFs draw $3B inflows in July

European investors led the return of capital to global gold ETFs in July.

Global gold exchange-traded funds (ETFs) regained investor interest in July, recording net inflows of $3 billion, led by European-listed funds, ending a two-month streak of capital outflows.

The inflows, coupled with higher gold prices, lifted total assets under management (AUMs) by 1% to $530 billion, while combined holdings increased by 23 tons to 4,068 tons.

According to the World Gold Council, Europe led global inflows with $2.14 billion, driven by strong demand in the UK and Switzerland, while Asia attracted $616 million in new investments.

The report said the sharp correction in semiconductor and technology stocks played a key role in prompting investors to reassess portfolio risk concentration and increase allocations to gold as a safe-haven asset and portfolio diversifier.