Gold ETFs Record Outflows of 16 Tonnes in May and Remain 298 Tonnes Below Year-Start Levels

Gold-backed exchange-traded funds (ETFs) recorded net outflows of approximately 16 tonnes during May 2026, according to World Gold Council data, bringing the assets of these funds down to about 298 tonnes below the level recorded at the start of the year.

These outflows came amid widespread anticipation in the markets, as Western investors preferred to reduce their gold positions following price surges to record levels, coupled with expectations of an improved inflation outlook and a reduced need for hedging.

Analysts noted that this performance reveals the extent of divergence in investor behavior globally; while Westerners continue to reduce their allocations through ETFs, central banks and Asian investors continue to increase their physical gold purchases.

European gold funds led the list of outflows, while their American counterparts recorded more stable performance, reflecting differing economic expectations across the Atlantic.

What Do These Terms Mean?

Gold ETFs: Investment instruments traded on stock exchanges that track the price of gold, allowing investors to invest in gold without the need to own or store physical bullion.

Outflows: The exit of money from an investment fund as a result of investors selling their units, which is the opposite of inflows that mean new money entering the fund.

Western Demand: The demand for gold from retail and institutional investors in Europe and North America, which differs from Asian demand and structural demand from central banks.