Inflow of Gold ETFs Reach $38 Billion in H1-2025

Marking the strongest semi-annual performance since H1 of 2020, global physically backed gold Exchange Traded Funds (ETFs) saw inflows of $38 billion in the first six months of 2025 which were boosted by strong positive flows in June.

All regions saw inflows last month, with North American and European investors leading the charge, World Gold Council said in its latest commentary on gold ETFs.

During the first half, North America accounted for the bulk of inflows, recording the strongest H1 in five years, and despite slowing momentum in May and June, Asian investors bought a record amount of gold ETFs during the same period, contributing an impressive 28% to net global flows with only 9% of the world’s total assets under management (AUM).

European flows finally turned positive in H1 2025 following non-stop semi-annual losses since H2 2022, the Council said.

By the end of H1, the surging gold price and notable inflows pushed global gold ETFs’ total AUM 41% higher to $383 billion, a month-end record. Collective holdings in H1 grew 397 tonnes to 3,616 tonnes, the highest month-end value since August 2022.

Regional Overview

North America attracted $4.8 billion in June, the strongest monthly inflow since March, bringing total H1 inflows to $21 billion. Spiking geopolitical risks amid the Israel-Iran conflict boosted investor demand for safe-haven assets and supported inflows into North American gold ETFs.

Although it held rates steady in June, the US Fed continued to express concerns about slowing growth and rising inflation.3 Markets are now pricing in three rate cuts by the end of 2025 and an additional two in 2026.

The US Treasury yields declined, and the dollar continued to weaken. Persistent policy uncertainty and ongoing fiscal concerns are likely to remain an overhang on the market, which in turn could help support gold ETF demand in the near to medium term, the Council said.

European inflows continued for a second month, adding $2 billion in June, the strongest since January, and lifting the region’s H1 total to $6 billion. The UK led inflows in the month; although the Bank of England kept rates unchanged at its June meeting, the stance was generally dovish.

Combined with weaker growth, easing inflation and the cooling labour market, investors raised their bets on future rate cuts. This resulted in local yields declining and pushed up gold’s allure. Meanwhile, the eighth cut from the European Central Bank, uncertainties surrounding growth, and rising geopolitical risks generally, contributed to gold ETF demand in several major markets.

India Leads in Asia

Asian flows flipped positive in June, albeit only mildly at $610 million, ending at $11 billon, a record amount for any H1 period. India led inflows in June, likely supported by rising geopolitical risks in the Middle East.

Japan recorded inflows for the ninth consecutive month ($198 million, $1 billion in H1), possibly driven by elevated inflationary concerns, particularly when the rice price surged. China only saw mild inflows in the month ($137 million) as trade tensions eased and the local gold price moderated. Nonetheless, China’s H1 inflows of $8.8 billion (85 tonnes) were unprecedented amid spiking trade risks with the US, growth concerns and the surging gold price.

Funds listed in other regions attracted $148 million in June, pushing H1 inflows to $661million. Australia and South Africa were the main contributors, both during the month and in H1. It is worth noting that Australian gold ETF AUM and holdings reached respective month-end peaks in June.