Net holdings in gold ETFs down 80% since January 1

Net holdings in physically-backed gold exchange-traded funds (ETFs) dropped by nearly 80 per cent between the start of the year and May 8, with outflows continuing for the third week in a row, data from the World Gold Council (WGC) showed.

Asian investors are keeping overall investments positive, though more investors continue to exit ETFs. For the week ending May 9, net investments were negative at $629 million, data from the World Gold Council (WGC) showed.

As of May 8, investments in ETFs were $69 billion, while exits were $50.01 billion. This resulted in a net inflow of $18.93 billion.  North America led the exits from ETFs, with $1.29 billion in outflows so far. Asians led investments at $16.16 billion, followed by Europe at $3.66 billion. 

US leads exits

Country-wise, exits in the US totalled $1.72 billion, while China ($9.23 billion) and India ($3.55 billion) led in the funds’ investments. Other countries with positive investments were the UK ($2 billion) and Switzerland ($1.89 billion).

This is in contrast to the ETFs holding at the start of the year. In 2025, net inflows were positive at $88.91 billion, with investments being $167.18 billion and exits $78.27 billion. 

In the week ending May 1, investments in ETFs were $2.03 billion, while exits totalled $2.40 billion. Last week, inflows were $1.18 billion, and $1.43 billion were taken out of ETFs. 

India and Italy led the inflow into ETFs in the week ending May 1 at $292.4 million, followed by Italy at $129.3 million, the UK 98.8 million and Singapore at $15.7 million.

Chinese book profits

During the week, outflows were the highest from the US at $780.4 million, followed by China at $130.5 million. 

Last week’s details of ETF investments by Indians were not available, but Chinese investors added $241.1 million to the inflows. Investors in the UK ($95 million), Canada ($80.3 million), Germany ($48 million), and Ireland ($24.8 million), as well as Singapore and Hong Kong, returned to invest in ETFs last week.

In the US, the exits were over $550 million, followed by Switzerland ($108 million) and France ($100 million).

Investors have been exiting ETFs after gold prices tumbled following the outbreak of the Iran war on February 28. The yellow metal prices had soared to a record high of $5,608 an ounce on January 29 before its southward journey began.

Central banks turn sellers

Currently, gold is quoting at $4,700 a ounce. The precious metal has shelved its gains on fears of a hike in US Fed interest rates, inflation, slowing economic growth and investors switching to crude oil futures from gold. 

The yellow metal surged as the US Fed cut interest rates, with the geopolitical crisis and US trade war with other countries adding further momentum. 

Besides more exits from ETFs, central banks too have turned sellers of gold. WGC data showed that they were net sellers in March.

Published on May 12, 2026