Chinese investors withdrew a record US$2.91 billion from domestic gold exchange-traded funds in June, marking a decisive shift in capital allocation as the appeal of the precious metal waned.
The outflows, the largest on record for a single month, reflect a broader rotation out of safe-haven assets and into equities, fueled by a recent surge in Chinese stock markets and a strengthening yuan.
The move comes as global gold market trading volumes averaged a record US$488 billion per day during the first half of the year, highlighting the metal’s central role in global portfolio hedging.
According to South China Morning Post, the profit-taking activity underscores how rapidly investor sentiment can pivot when domestic risk assets offer compelling returns and currency stability improves.
The move comes as global gold market trading volumes averaged a record US$488 billion per day during the first half of the year, highlighting the metal’s central role in global portfolio hedging.
However, the June outflows from China—a key driver of physical gold demand—suggest that the safe-haven bid is losing momentum.
This rotation aligns with broader trends seen in recent weeks, where investors have pulled record amounts from gold ETFs globally, marking the largest weekly outflows of the year as gold prices softened.