Gold ETF inflows turned positive after five weeks of continuous outflows last week, though the recovery was modest with $3.15 billion in inflows against $2.01 billion in outflows, according to data from the World Gold Council (WGC). The inflows were led by the US with $603.3 million, followed by the UK at $338.1 million, Germany at $258.7 million, Switzerland at $183.3 million, and France at $145.3 million. However, investors exited in Canada (-$222 million), South Africa ($59.6 million), Ireland ($56 million), and Australia ($39.2 million).
According to The Hindu BusinessLine, Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions Ltd and President of India Bullion and Jewellers Association Ltd, noted that a US-Iran ceasefire briefly eased gold's war premium before Geneva talks collapsed and Iran reclosed the Strait of Hormuz. Jateen Trivedi, VP Research Analyst at LKP Securities, explained that gold prices remained under pressure after the Federal Reserve signalled the possibility of one interest rate hike in 2026, strengthening the dollar and reducing the appeal of non-yielding assets such as gold.
Last week, Europe led investments at $869.1 million, followed by North America at $381.3 million, while Asia witnessed $7.5 million outflows. As of June 19, global inflows totalled $77.49 billion while outflows were $64.48 billion, with net inflows negative in the US at $4.71 billion and positive in France at $375.5 million. Investments were positive in the UK at $2.17 billion and Switzerland at $1.85 billion, while China recorded positive inflows at $6.94 billion and India at $3.47 billion.
Gold holdings in ETFs increased last week from 4,081.1 tonnes to 4,086.3 tonnes, according to WGC data. Inflows in SPDR Gold Mines Shares Trust were up by $930.6 million, after witnessing outflows over the past five weeks. Gold prices dropped to $4,205.53 an ounce on Monday after the US Fed's hawkish signal, following a rally that saw the yellow metal hit a record high of $5,608 an ounce on January 29.
As of June 19, global inflows totalled $73.49 billion while outflows were $64.48 billion, with total global inflows at $77.49 billion and outflows at $64.48 billion. The yellow metal witnessed a significant rally between 2024 and February 2026 as it was seen as a haven asset due to interest rate cuts by central banks, geopolitical crisis, and US tariff wars with various countries. However, investors have chosen to exit after the Iran war broke out, on fears of inflation, rising crude oil prices, increasing bond yields, and expectations of a drop in global economic growth.
