But Still Positive
Global gold ETFs see outflows after five months in May, says WGC
This story was originally published at 21:18 IST on 5 June 2025
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MUMBAI – Global gold exchange-traded funds saw outflows in May, led by Asia and North America, while Europe witnessed inflows during the month, the World Gold Council said in a report. The first monthly outflow since November and a mild fall in gold prices in May saw assets under management of global gold exchange-traded funds at $374 billion in May, down 1% from April. Total assets fell by 19 tonnes to 3,541 tonnes, WGC said.
"Despite May's loss, global gold ETF flows have remained positive so far in 2025, at $30 billion. Holdings have also seen a cumulative rise of 322 tonnes during the period," it added.
Asian gold exchange-traded funds recorded outflows of $489 million, or 4.8 tonnes in May, the first monthly loss since November. "China led outflows as safe-haven demand diminished amid de-escalating trade tensions with the US and subsequent equity rebounds." Indian gold exchange-traded funds saw an ouflow of 600 kilograms, or $71.8 million in May. The total assets under management in the country fell to 64.6 tonnes.
In North America, gold exchange-traded funds recorded outflows of $1.5 billion in May, or 15.6 tonnes, the first outflow since January. "The better-than-expected temporary easing of tariffs between the US and China improved investor risk appetite, which led to a strong rebound in equities, but lower safe-haven demand for gold," WGC said.
However, gold exchange-traded funds in Europe experienced mild inflows, adding $225 million, or 1.6 tonnes, in May. Inflows in France more than offset continued outflows from Germany and the UK. "Outflows in Germany may have been driven by cooling global trade uncertainty – which pushed up investor risk appetite – before Trump's renewed tariff threats on Europe later in the month," WGC said.
Gold holdings with SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell by 14.1 tonnes to 929.9 tonnes in May. The second-largest gold-backed exchange-traded fund, iShares Gold Trust, saw an outflow of 5.5 tonnes, with its holdings at 431.7 tonnes.
The daily average trading volume across all gold markets fell 18% on month to $363 billion in May, due to tepid gold prices. Total net long positions on the COMEX declined 3% on month to 551 tonnes as of May-end, with net long positions of money managers rising slightly by 1% to 365 tonnes.
At 2021 IST, the August contract of gold on the COMEX was at $3,394.50 per ounce, down 0.1% from the previous close. End
US$1 = INR 85.79
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Ashutosh Pati
Edited by Tanima Banerjee
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