Gold ETF Liquidations Accelerate in June on Hawkish Fed Outlook

Despite gold prices holding above $4,000 an ounce, June saw heavy outflows from gold-backed ETFs. The World Gold Council reported 74.3 tonnes, nearly $9 billion, exiting the market last month, although the first half still posted net inflows of 17.6 tonnes worth $8 billion. North American funds led the selling with 42.4 tonnes ($5.5 billion) withdrawn. “As new Fed Chair Warsh sent hawkish – as the market interpreted – signals and the US-Iran conflict pushed inflation fears up, expectations intensified of higher interest rates ahead,” the report noted. European holdings fell 12.1 tonnes ($817 million) after the ECB hiked rates 25 bps, while Asian ETFs lost 71.5 tonnes ($2.2 billion), mainly from China and Japan, though India recorded inflows.