FX.co ★ XAU/USD, GOLD

XAU/USD In June, Chinese investors withdrew a record $2.22 billion from domestic gold exchange-traded funds.As risk appetite increased and attention turned to stocks, investors chose to take profits. Despite the decline in June, China's demand for gold through ETFs was substantial throughout the first half. According to statistics from the World Gold Council (WGC), as local investor risk appetite continued to strengthen with equities market advances and a lower gold price, Chinese investors drastically reduced their gold ETF holdings in June, aggravating worldwide outflows for the month. According to figures released on Wednesday, outflows from physically backed gold exchange-traded funds (ETFs) in mainland China were $2.22 billion in June, the biggest monthly amount ever. Gold prices dropped more than 11% throughout the month, mirroring the January decline, as central banks continued to hint at future interest rate hikes as the US-Iran confrontation fuelled concerns about inflation. According to the WGC, "this expectation contributed to rising real yields and a strengthening US dollar, pushing up investors' opportunity costs of holding gold." Given that China is the largest market for precious metals worldwide, the withdrawal by Chinese investors is noteworthy. With almost $1.1 billion, the Huaan Yifu Gold ETF was the ETF experiencing the greatest

June, withdrawals from gold exchange-traded funds (ETFs) totalled $8.9 billion worldwide, primarily from Chinese investors but also from American investors, who withdrew over $5.3 billion. Beyond June, the WGC's statistics reveal that the first semester's worldwide gold ETF flows were positive at almost $8 billion. North America was the only area to see outflows, while Asia led the world in inflows (posting the best H1 on record). Europe also saw increases.