Investors withdrew $8.9 billion from gold ETFs in June. North American funds suffered the most — they accounted for about $5.5 billion of the outflow. The money started leaving amid a decline in gold prices, which has lasted for several months now.
June became the fourth consecutive negative month for the metal. During this period, gold lost 11.7%. Investors became more cautious due to the Fed’s tough stance and tensions in the Middle East. Instead of buying gold as a safe haven, part of the market decided to cut positions.
Outflows From Gold ETFs Intensified in June
According to the World Gold Council, gold ETF assets under management fell by 13% over the month to $526 billion. Gold reserves in the funds also decreased — by 74 tons to 4,047 tons. After the sharp price drop, investors began to reassess the share of gold in their portfolios and lock in positions.
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An additional factor was signals from the new Fed chief, Kevin Warsh. He made it clear that the regulator does not intend to ease policy quickly. Against this backdrop, expectations of high rates increased. The conflict between the US and Iran also added nervousness to the market, as investors began to fear a new round of inflation.
For gold, such an environment does not look favorable. When real yields rise and the dollar strengthens, holding a non-interest-bearing asset becomes less attractive. As a result, some capital moved into instruments that provide yield.
North American funds have lost about $7.7 billion since the start of the year. For the region, this is the weakest start to a year since 2013. In Europe, outflows in June amounted to $818 million. There, pressure intensified after the European Central Bank raised rates by 25 basis points for the first time since September 2023.
Capital flows in gold ETFs. Source: World Gold Council
Other regions also saw negative results. Outside of North America, Europe, and Asia, investors withdrew $262 million from gold ETFs over the month. Because of this, net inflows since the start of 2026 fell to $106 million. The main contribution to the decline came from Australia, where funds lost $197 million. In South Africa, outflows amounted to another $36 million.
The World Gold Council believes that flows may stabilize in the coming months. But there are still plenty of reasons for caution: geopolitics remains tense, the pace of global economic growth raises questions, and financial markets continue to be volatile. Therefore, demand for gold as a safe-haven asset may persist, even if investors are cutting positions in the short term.
The First Half Remained Strong Anyway
Despite a weak June, global gold ETFs attracted about $8 billion in the first six months of 2026. The main source of inflows was Asia. There, investors put $12 billion into funds, the best result for the first half in the entire history of observations.
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However, June was a failure for Asia. About $2.3 billion was withdrawn from regional funds, the worst monthly figure ever. The main outflow came from China, where investors were most actively cutting positions.
India, on the contrary, went against the general trend. Local investors used the price drop as an opportunity to enter gold at a lower price. Amid the sell-off, they began to buy more gold ETF shares.
As a result, global funds increased their gold reserves by 18 tons over the half-year. But due to the decline in the metal’s price, assets under management still fell by 6%. So, interest in gold has not completely disappeared, but the market has become much more selective.
