Global physically backed gold ETFs attracted $18 billion in August, the second-largest monthly inflow on record, according to the World Gold Council. Holdings rose by 121 tonnes to a record 4,189 tonnes, while total assets under management climbed 16% to $615 billion.
At the same time, the People’s Bank of China added 20.2 tonnes of gold in August, its largest monthly purchase since October 2023. China’s official holdings have now increased for 22 consecutive months, reaching 2,387 tonnes.
ETF Demand Is Surging Again
The August inflow was driven mainly by North American and European funds.
North American gold ETFs attracted $7.7 billion, while European-listed funds added $7.9 billion, their strongest month on record. Asian funds contributed another $2 billion.
That helped reverse some of the weakness seen earlier this year and pushed total ETF holdings above every previous historical peak.
The surge also coincided with a 13% monthly rise in the gold price, the metal’s strongest month since January. Stronger momentum, concerns around U.S. debt and Treasury-market stress all contributed to renewed investor demand.
China’s Gold Buying Is Accelerating
China’s August purchase stands out because it nearly doubled the 10-tonne increase recorded in May and pushed gold to roughly 9% of the country’s foreign-exchange reserves.
The central-bank buying is happening even as parts of China’s physical gold market remain weak.
Shanghai Gold Exchange withdrawals fell 22% month over month and 27% year over year to 62 tonnes in August, reflecting softer bullion investment and still-weak jewellery demand. Meanwhile, Chinese gold ETFs added 11 tonnes, lifting their holdings to 293 tonnes.
That divergence suggests gold demand inside China is increasingly being driven by institutional investors and the central bank, rather than jewellery buyers.
Coinpaper’s recent gold market coverage has tracked the metal’s growing role as a hedge against high sovereign borrowing costs and macro uncertainty.
