Global gold exchange-traded funds (ETFs) pulled in $18 billion in August, the second-largest monthly inflow on record, lifting collective holdings to an all-time high of 4,189 tonnes.

The World Gold Council published the figures this week. Total assets under management (AUM) rose 16% month over month to $615 billion, helped by a higher gold price.

Western Buyers Return to Gold in Force

European funds drove the month with $7.9 billion of buying, their strongest on record, according to Council data. The UK supplied $4.4 billion of that total, its second-largest month ever. France added $1.5 billion, a national record.

North American funds attracted $7.7 billion. This marked their third-largest monthly haul. Demand stayed muted early on before accelerating during the week of August 17, when funds absorbed roughly $4 billion in five trading days. This came around the same time as the Treasury expanded its debt buyback.

That burst mattered for the annual picture. It offset the region’s record $13 billion outflow in March and pushed North American flows back into positive territory for the year.

Asian funds added $2 billion, their best month since February. China again led the region, where stabilising local prices drew investors back. The country’s central bank has extended its own buying streak.

Global ETF flows had already turned higher in July. Year to date, global inflows total $29 billion, or 160 tonnes.

The Council tied the surge in inflows to three likely drivers. It cited US intervention to support the yen on July 31, the Treasury’s August 19 buyback move, and price momentum after gold cleared key technical levels.

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Traders Pile Back Into the Metal

Activity across the wider gold market rebounded. Average daily trading volumes climbed 21% month over month to $430 billion, with gains in every major segment.

Gold ETF trading volumes jumped 83% to $8.7 billion per day. North American-listed funds accounted for more than 73% of that activity.

Positioning followed. COMEX net long positions rose 39%, or 212 tonnes, to 753 tonnes. Managed money added 96 tonnes, taking its net longs to 470 tonnes.

Now, September data will show whether Western buyers keep adding at August’s pace.

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Source: BeInCrypto