Gold ETFs Attract $3 Billion in July as Western Buyers Return, Posing Key Test for Rally

Thu Aug 13 2026

Global gold ETFs attracted $3 billion in inflows during July, ending two consecutive months of outflows and lifting global holdings to 4,068 metric tons. Europe led with $2 billion in inflows, marking its second-highest monthly total this year; Asia contributed $616 million; North America saw only $71 million in inflows, which the World Gold Council described as an "initial recovery" — and the region remains the only one with net outflows year-to-date. Spot gold currently trades around $4,400 per ounce, up 9% this month but still roughly 21% below January's record high. Saxo Bank's head of commodity strategy noted that Western investment demand is beginning to recover and the demand landscape is broadening. Market experts believe whether North American investors return at scale will be the critical test for the sustainability of the gold rally.

Key Elements

After two consecutive months of outflows, investors are piling back into the global gold market. The latest data from the World Gold Council shows that global physically-backed gold ETFs attracted $3 billion (approximately NT$97 billion) in inflows during July, lifting global holdings by 23 metric tons to 4,068 metric tons — injecting fresh momentum into the gold price recovery.

Spot gold currently trades around $4,400 per ounce, up about 9% this month, but still roughly 21% below the all-time high of nearly $5,600 set in January. The metal remains down about 2% year-to-date.

The return of buying interest shows clear regional divergence. Europe was the most aggressive, with July inflows reaching $2 billion (approximately NT$64 billion), marking the region's second-highest monthly inflow this year. Asian funds contributed $616 million (approximately NT$20 billion) in inflows. By contrast, North America's recovery has been more sluggish, recording only about $71 million (approximately NT$2.5 billion) in inflows — a pace the World Gold Council described as an "initial recovery."

Notably, North America remains the only region with net ETF outflows year-to-date, suggesting there is still considerable room for the market to catch up.

Signs of Western Investment Demand Recovery

Ole Hansen, head of commodity strategy at Saxo Bank, noted in a Tuesday report that there are already signs of Western investment demand beginning to recover. "The demand landscape is broadening once again," he wrote.

Earlier this year, after gold prices spiked to record highs in January, investment demand collapsed sharply amid rising bond yields and a stronger U.S. dollar, triggering a significant price pullback. The selloff at the time even prompted Wall Street analysts to retreat from some of their most bullish price forecasts.

However, even as Western asset managers pulled back, sustained buying from central banks and Asian investors served as a crucial pillar of support, preventing a more severe decline in gold prices.

North American Buying Emerges as Key Variable

Market experts believe whether North American investors return to the market at scale will be the "critical test" for the sustainability of this gold rally. July's North American inflows of just $71 million are negligible compared with Europe's $2 billion, but they do signal that regional fund flows are turning from negative to positive.

If Western investors can build stronger buying pressure, it would add another important pillar of demand to the gold market. The demand structure is gradually shifting from one dominated by central banks and emerging markets over the past few months toward a more diversified landscape.

The following table summarizes global gold ETF flows in July:

Region	July Inflows	Relative Performance
Europe	$2 billion	Second-highest monthly inflow this year
Asia	$616 million	Steady, sustained accumulation
North America	$71 million	Initial recovery; only region with net outflows this year

Note: Global inflows totaled $3 billion, with holdings up 23 metric tons to 4,068 metric tons.

Market participants note that the timing of the recovery in gold investment demand is critical. Against the backdrop of continued central bank buying, if Western ETF buying can pick up the baton, gold prices will have an opportunity to challenge the year's earlier highs. Conversely, if North American investors remain on the sidelines, the sustainability of the rally will face a serious test.

Source: https://finance.biggo.com