Chinese investors withdrew a record $2.22 billion from physically-backed Gold ETFs in mainland China during June, marking the highest monthly outflow ever recorded, according to data from the World Gold Council (WGC) [1]. This significant reduction in holdings was attributed to an improving risk appetite among local investors, driven by gains in the equity markets and a decline in gold prices, which fell by more than 11% over the month [1]. The Huaan Yifu Gold ETF experienced the largest outflow, losing more than $1.1 billion [1].
Globally, Gold ETFs saw total outflows of $8.9 billion in June, with Chinese and US investors leading the withdrawals. US investors pulled more than $5.3 billion, followed by outflows from France, Germany, and Japan [1]. The WGC noted that the anticipation of potential interest-rate increases by central banks, rising real yields, and a strengthening US Dollar increased the opportunity cost of holding gold, further contributing to the outflows [1].
Despite the sharp June outflows, global Gold ETFs posted net inflows of around $8 billion during the first half of the year, with Asia dominating global inflows and Europe also registering gains. North America was the only region to record outflows in the first semester [1]. However, these inflows were lower than those seen during 2025 [1].
Looking ahead, the WGC projects that Gold ETF flows could stabilize in the second half of the year, citing ongoing uncertainties in geopolitics, economic growth, and financial markets. The WGC report suggests that these factors may continue to support investor demand for portfolio protection and sustain interest in gold ETFs as a strategic safe-haven allocation [1].
CONCLUSION
The record outflows from Chinese Gold ETFs in June highlight shifting investor sentiment amid rising equities and falling gold prices. While global Gold ETF flows remained positive for the first half of the year, the outlook for the second half suggests potential stabilization as investors weigh ongoing economic and geopolitical uncertainties.