Investor demand for gold exchange-traded funds collapsed in the second quarter, with net flows turning sharply negative as major markets pulled back from the precious metal.
According to data from the World Gold Council, inflows reversed from $12.36 billion in the first quarter to outflows of $4.27 billion in the second quarter.
3 billion from $607.1 billion during the period, marking a significant contraction in institutional and retail exposure.
The shift reflects a broader cooling in appetite for non-yielding assets amid shifting monetary policy expectations.
The exodus was concentrated in June, which accounted for more than 50% of the total second-quarter outflows.
Investors in the United States and China led the encashments, driving the decline in assets under management.
Total holdings in physically backed gold ETFs fell to $526.3 billion from $607.1 billion during the period, marking a significant contraction in institutional and retail exposure.