China, India and Japan drive renewed Asian appetite for gold ETFs; global inflows hit $18 billion in August

Gold exchange-traded funds (ETFs) witnessed a sharp revival in investor demand in August, with Asian funds attracting US$2 billion, their strongest monthly inflow since February. China remained the key driver of regional demand, while India and Japan also recorded modest inflows as improving gold-price performance encouraged investors to increase exposure to the precious metal.

The renewed appetite came amid a broader global surge in gold ETF investment. Globally, gold-backed ETFs attracted US$18 billion in August, making it the second-largest monthly inflow on record. The strong buying was led by North American- and European-listed funds.

China leads Asian ETF demand

China once again accounted for the bulk of Asian gold ETF inflows in August. The World Gold Council (WGC) said stabilising and rebounding local gold prices attracted investor interest, putting the region on course to potentially surpass its record inflow year in FY25.

Lower local government bond yields and a range-bound equity market also provided additional support to gold investment, according to the WGC. Investors appear to have found gold increasingly attractive amid subdued performance in some traditional asset classes.

China's gold ETF inflows stood at US$1.54 billion in August, taking year-to-date inflows to about US$7.86 billion. Holdings increased by 10.7 tonnes during the month to 292.7 tonnes.

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India sees continued inflows

India also recorded positive demand for gold ETFs, with funds attracting US$260.2 million in August. Year-to-date inflows have reached US$4.22 billion, highlighting the growing role of gold-backed investment products in the country's investment landscape.

Indian gold ETF holdings rose by 1.6 tonnes in August to 121.3 tonnes. Japan, meanwhile, recorded inflows of US$174.4 million during the month, with holdings rising 1.2 tonnes.

Gold ETF flows — August 2026

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Global ETF holdings hit record

The surge in Asian demand was part of a much broader global rally in gold ETF investment. Global ETF assets under management jumped 16% month-on-month to US$615 billion, helped by strong inflows and a higher gold price.

Collective gold holdings climbed by 121 tonnes to a record 4,189 tonnes in August. Year-to-date global ETF inflows have reached US$29 billion, equivalent to a 160-tonne increase in holdings.

The WGC attributed the acceleration in global flows to a combination of currency-policy concerns, heightened fiscal and Treasury-market risks and gold's strong price momentum. As gold broke above key technical levels, the price rally likely attracted additional tactical and institutional demand.

The report also showed that global gold-market activity strengthened sharply in August, with average daily trading volumes rising 21% month-on-month to US$430 billion, while gold ETF trading volumes surged 83% to US$8.7 billion per day.

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