In May 2026, global physically backed gold ETFs recorded net outflows of USD 2 billion, stated the latest report of the World Gold Council (WGC). As a result, total assets under management (AUM) for global gold ETFs declined by 2% month-over-month to USD 604 billion, while collective holdings dipped slightly by 0.4% to 4,121 tonnes.
As per the WGC, the outflows were primarily driven by Asia and North America, which saw amounts worth USD 12 billion and USD 11 billion, respectively. Europe was the only region to register net inflows, attracting USD 3.34 billion in May.
“Despite the monthly net outflow, year-to-date fund flows into global gold ETFs remain positive, with cumulative net inflows approaching USD 17 billion,” WGC remarked.
As per the WGC, gold prices traded sideways in May without clear directional catalysts, prompting many investors to stay on the sidelines and adopt a wait-and-see stance. Meanwhile, risky assets such as technology stocks regained investor interest, with global technology-related ETFs recording their largest single-month net inflows since the beginning of 2024, leaving gold ETFs at a distinct disadvantage in terms of asset allocation competition.
As consensus macro trades—including gold—were largely realised in the first quarter, some investors who missed the rally or needed to catch up with benchmark performance have redirected capital back into cyclical sectors such as technology. Market reaction to the escalating tensions in the Middle East has so far remained muted, and safe-haven demand has yet to provide meaningful support,” WGC noted in its report.
Apart from registering net outflows of USD 11 billion, North America is also witnessing sluggish fund inflows since prices of the yellow metal entered a consolidation phase following their March pullback, suggesting investors are awaiting clearer entry signals.
“Beyond price dynamics, the opportunity cost of holding gold has also increased—with a stronger US dollar, persistently high interest rates, and shifting market expectations regarding the Federal Reserve’s future rate-cut trajectory all constraining gold demand. Additionally, inflation concerns stemming from US-Iran tensions have further clouded the interest rate outlook, leading some market participants to believe the Fed may need to maintain a restrictive monetary policy stance for longer,” WGC remarked.
Talking about Asia, funds on the continent recorded their first monthly net outflow since August 2025 in May, totalling USD 1.2 billion, with nearly all of the decline attributable to the Chinese market, due to factors like weakening domestic gold prices, renminbi appreciation and sustained bullish sentiment in the equity market that are collectively dampening the local demand for gold ETFs.
“The Indian market also experienced outflows amounting to USD 610 million, ending a streak of 12 consecutive months of net inflows. Notably, most of India’s outflows in May occurred after the announcement of higher import tariffs, as investors took profits amid rising domestic gold prices,” WGC noted.