The World Gold Council (WGC) has reported that global physically-backed gold exchange-traded funds (ETFs) saw inflows of $38-billion during the first half of this year, marking the strongest semi-annual performance since the first half of 2020.

The inflows for the six-month period were boosted by strong positive flows in June, with all regions having recorded inflows and with North American and European investors leading the charge.

During the first half of this year, North America accounted for the bulk of inflows, recording the strongest first half in five years, with inflows totalling $21-billion, followed by Asia at $11-billion and Europe at $6-billion.

Despite slowing momentum in May and June, the WGC notes that Asian investors bought a record amount of gold ETFs during the six-month period, contributing an impressive 28% to net global flows with only 9% of the world’s total assets under management (AUM).

European flows finally turned positive in the first half, following non-stop semi-annual losses since the second half of 2022.

By the end of the first half of this year, the surging gold price and notable inflows pushed global gold ETFs’s total AUM 41% higher to $383-billion, a month-end record. Collective holdings in the half-year period grew by 397 t to 3 616 t, the highest month-end value since August 2022.

Gold market trading volumes averaged $329-billion a day during the first half, the highest semi-annual value on record.

Over-the-counter trading in the first half increased to $165-billion a day; well above its 2024 average of $128-billion a day, says the WGC.

Exchange-traded volumes also saw a sizeable increase through the first half of the year, averaging $159-billion a day, driven by increased activity on COMEX and the Shanghai Futures Exchange.

Meanwhile, trading volumes of global gold ETFs continued to gain strength in the first half, particularly from North America and Asia, which averaged $4.3-billion a day and $900-million a day, respectively.

The WGC notes that total net longs in COMEX gold futures fell 23% to 586 t in the first half, but notably rebounded 6.5% month-on-month in June.

It explains that money managers reduced their long positions by 28% over the first six months. But it is worth noting that during June it saw positions increase by 11% month-on-month, to 406 t.

This was likely supported by consolidation in the gold price, providing investors with a window of opportunity to begin rebuilding positions, the WGC says.