Gold ETFs See $18 Billion Inflow in August, Second-Biggest Month Ever

Global gold exchange-traded funds (ETFs) attracted $18 billion in August, marking the second-largest monthly inflow on record and raising total holdings to an all-time high of 4,189 tonnes. Total assets under management (AUM) increased 16% month over month to 615 billion dollars, driven by a rise in gold prices. European funds led the inflow with 7.9 billion dollars, the strongest month on record, including 4.4 billion dollars from the UK and 1.5 billion dollars from France, both national records. North American funds garnered 7.7 billion dollars, their third-largest monthly total, with a notable surge during the week of August 17, when approximately 4 billion dollars were absorbed in five trading days. Asian funds contributed 2 billion dollars, their best month since February, with China leading the region as local prices stabilized. Year-to-date global inflows reached 29 billion dollars, or 160 tonnes. The World Gold Council attributed the inflow surge to US intervention to support the yen, the Treasury's debt buyback move, and positive price momentum. Average daily trading volumes in the gold market rose 21% month over month to 430 billion dollars, with gold ETF trading volumes increasing 83% to 8.7 billion dollars per day. COMEX net long positions rose 39% to 753 tonnes, indicating increased positioning in the market.