Gold ETF inflows slow to US$2.7B in October as holdings hit record
European and Asian buying offset North American withdrawals, but lower gold prices cut global fund assets by 6 per cent.
Theo Marchetti
Gold exchange-traded funds, including funds traded on NYSE Arca, attracted US$2.7 billion in October as inflows slowed, the World Gold Council reported Nov. 5. Holdings rose 19 tonnes to a month-end record of 4,275 tonnes.
The council's Oct. 7 report recorded US$10 billion of inflows in September, when holdings increased by 67 tonnes. October's continued buying could not offset falling gold prices: assets under management declined 6 per cent to US$542 billion, according to the November report.
European funds attracted US$1.8 billion in October, while Asian funds added US$1.3 billion. North America was the only region with net withdrawals, losing US$512 million as US selling outweighed continued inflows into Canadian funds.
Google Finance quoted SPDR Gold Trust NYSEARCAGLD at US$372.52 on NYSE Arca, down 0.79 per cent, as of 8 p.m. EST on Nov. 6.
Europe And Asia Offset North American Selling
European funds had recorded inflows for 18 consecutive weeks by the end of October, the council said. The UK led the month's regional buying, with funds in Germany, Switzerland and France also attracting money.
"This suggests that demand for gold ETFs may be increasingly strategic, reflecting persistent political and fiscal uncertainty across the region," the council said of Europe in its Nov. 5 report.
China led Asian inflows, while Japanese funds also attracted money. The council linked Chinese demand to weakness in domestic equities and falling government bond yields, which it said reduced the opportunity cost of holding gold.
Read more: China adds 25.8 tonnes of gold in October as reserve value falls
The council offered a different explanation for North America. It said stress in US technology equities may have prompted investors to use gold holdings as a source of liquidity, while demand for US Treasuries could have diverted money from gold.
Across the first ten months of 2026, gold ETFs attracted US$41 billion and added 246 tonnes. Europe and Asia accounted for 44 per cent and 45 per cent of net inflows, respectively, according to the November report.
Bullion Funds And Miners Have Different Exposures
SPDR's fund page, dated Nov. 8, states that its shares aim to reflect gold bullion prices after expenses. Its annual gross expense ratio is 0.40 per cent. The October industry totals show why positive subscriptions alone do not guarantee rising fund assets when the underlying metal loses value.
Mining shareholders also have operating costs to consider. Newmont Corporation NYSENEM ASXNEM reported Oct. 22 that it produced approximately 1.3 million attributable gold ounces in the third quarter and generated US$1.9 billion in free cash flow, a non-GAAP measure.
Newmont reported gold by-product all-in sustaining costs of US$1,454 an ounce for the third quarter of 2026, also a non-GAAP measure. Those operating results provide a separate measure of producer performance from the subscriptions and bullion holdings tracked in the ETF report.
The next scheduled US inflation reading is the October Consumer Price Index on Nov. 10, according to the Bureau of Labor Statistics calendar. It will show the latest change in consumer prices, supplying a new data point for interest-rate expectations.
