Investor appetite for gold exchange-traded funds in China, India, and Japan propelled August inflows to near record highs, as global gold assets hit a new peak amid market volatility.
Asian demand for gold exchange-traded funds strengthened sharply in August as investors in China, India and Japan increased their exposure to the metal, according to the World Gold Council. The surge helped drive global gold ETF inflows to US$17.86 billion for the month, the second-highest monthly total on record, as worries over currencies, public finances and Treasury-market risks added to gold’s appeal.
China remained the clear regional leader. The World Gold Council said Chinese gold ETFs attracted US$1.54 billion in August, lifting year-to-date inflows to about US$7.86 billion and pushing holdings up by 10.7 tonnes to 292.7 tonnes. The council said stabilising and rebounding local gold prices, together with lower government bond yields and a range-bound stock market, helped keep investors interested. Separately, the council noted that Chinese funds had already drawn strong inflows in July as official-sector buying and institutional participation supported the market.
India also extended its run of demand. Indian gold ETFs pulled in US$260.2 million in August, taking year-to-date inflows to US$4.22 billion, while holdings rose by 1.6 tonnes to 121.3 tonnes. Japan added US$174.4 million during the month, with holdings increasing by 1.2 tonnes. Taken together, Asian gold ETFs attracted US$2.04 billion in August and US$15.01 billion so far this year, putting the region on course to challenge its record annual intake, according to the council.
The wider global picture was equally strong. The World Gold Council said global gold-backed ETF assets under management rose 16 per cent month on month to US$615 billion in August, while total holdings climbed by 121 tonnes to a record 4,189 tonnes. Average daily gold-market turnover rose 21 per cent to US$430 billion, and ETF trading volumes jumped 83 per cent to US$8.7 billion a day, suggesting that the rally has drawn both tactical and institutional money into the market.
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