Australia’s gold ETF market remained resilient

Australia’s gold ETF market continued to build momentum, recording positive year-to-date inflows and higher holdings despite a marked slowdown in global investor demand during May.

According to the latest World Gold Council (WGC) gold ETF Commentary, Australian gold ETFs attracted $US319.9 million in net inflows during the first five months of the year, lifting holdings by 2.5 tonnes to 54.3 tonnes. Assets under management stood at $US7.9 billion at the end of May, placing Australia among the world’s top 10 gold ETF markets.

While Australian funds recorded a modest US$5 million outflow during May, the local market compared favourably with several larger gold investment centres as global ETF flows weakened.

The WGC reported that global gold ETF flows “slowed to a trickle in May”, with total outflows of $US2 billion for the month.  Investor activity softened after gold entered a period of sideways trading following its strong gains earlier in the year.

“Flows have been relatively muted since gold began trading sideways following the March drawdown, suggesting that investors have moved to the sidelines while awaiting a clearer catalyst,” the WGC said.

North American funds recorded $US1.08 billion in outflows during May, while Asian funds shed $US1.24 billion. Europe was the only region to post net inflows, attracting $US334.3 million.

Despite the softer month globally, Australia remained in positive territory for 2026. Among the world’s 10 largest gold ETF markets, Australia recorded year-to-date inflows of $US319.9 million and a 2.5-tonne increase in holdings.

The report also highlighted continued strength in the broader gold market. Global trading volumes rose 3 per cent month-on-month to $US424 billion per day in May, remaining 15 per cent above the 2025 average.

For Australian investors and gold producers, the figures suggest interest in gold-backed investment products has remained intact through the first half of 2026, even as global ETF demand moderated from the strong pace seen earlier in the year.