WGC: Global Gold ETF Flows Remain Positive in H1 2026

Asia gold ETF demand up while North America sees losses

The three key regional markets for gold ETFs are Asia, North America and Europe. While each region experienced outflows for the month of June, North America was the hardest hit, with US$5.5 billion in gold leaving ETFs.

Looking at the entirety of H1 2026, the North American gold ETF market was the only region to suffer a loss overall, posting its weakest first half of a year since 2013, noted the WGC.

Analysts attributed the US$7.7 billion in gold ETF outflows to growing expectations that the US Federal Reserve will require higher interest rates to combat the energy-related inflation fueled by the US-Iran war. Such a monetary environment raises the opportunity cost for holding non-yielding assets such as gold.

Despite this North American pullback in gold ETF demand, two Canadian funds ranked among the the top ten gold ETFs by performance for June: BMO Gold Bullion ETF and BMO Gold Bullion Hedged to CAD.

In contrast, the Asian gold ETF market achieved its strongest H1 period for inflows on record totaling US$12 billion. June’s outflows amounted to US$2.3 billion as Chinese investors turned from gold to equities and Japanese investors shied away from the yellow metal as the Bank of Japan raised interest rates. India is the bright light in the region where optimism about the long-term gold price remains strong amid investors.

As for Europe, the WGC reported “healthy infows” of US$3.2 billion for the first half of 2026, despite a loss of US$818 million in June following the European Central Bank's first rake hike since September 2023.

Institutional demand strong as gold investing goes mainstream

A clear sign that the gold bull market has retained a strong floor of support can be seen in the Commodity Futures Trading Commission (CFTC) data. As WGC notes, total COMEX net longs for June jumped by 16 percent month-over-month to 538 metric tons, representing its highest month-end position since January 2026.

“It is noteworthy that managed money net longs have been rising since early June despite a weakening gold price,” stated WGC analysts. “ A closer look at the CFTC positioning data reveals a divergence across investor cohorts: while non-reportable net longs – a proxy for retail participation – reduced during the month, other reportables, which capture large trades outside the managed money category, increased by 16 percent m/m. “

Basically, buying by hedge funds, banks and large institutional investors is providing a safety net for the gold price.

Everyday retail investors may be more reactive to headlines and short-term drops in price of the yellow metal, but institutional investors are more proactive, viewing lower gold prices as buying opportunities before the next leg up.

This trend is reflected in the fact that overall in H1 money-managed net longs declined by a mere 43 metric tons. The WGC report explains “as was evident in June, investor behaviour through H1 differed: retail positioning largely tracked short-term price movements while larger traders’ positions have, in general, stayed stable since mid-March”.

Record high liquidity in H1 2026

The greater participation of institutional investors in the gold market is one sign that investing in precious metals is becoming more mainstream. This in turn has led to increased liquidity in the gold sector–another indicator of a healthy market.

Liquidity measures the total volume of transactions passing through the market, not just the buying pressure. High liquidity means a market has enough depth to absorb heavy activity without forcing major, erratic price swings.

Liquidity in the global gold market soared to a record high in the first half of this year, according to the WGC, averaging US$488 billion per day in trading activity, encompassing over-the-counter (OTC) transactions, ETFs, and futures markets (like COMEX).

Global gold ETF trading averaged US$12 billion per day, up 73 percent over the 2025 average, “fuelled primarily by robust trading in US funds as investors increasingly turned to gold amid heightened macroeconomic and geopolitical uncertainty,” stated the WGC report.