Gold: After Five Months of Inflows, ETFs Saw $1.8 Billion in Outflows in May

Quick overview

May proved challenging for the precious metal, particularly during a volatile first half of the month—despite a partial recovery in the final weeks.

For the first time this year, major institutional investors such as global gold-backed ETFs—collectively holding over 3,500 tonnes of physical gold—saw net outflows.

After five consecutive months of strong inflows, global gold ETFs recorded net outflows of $1.8 billion in May, equivalent to 19 tonnes of gold. North America and Asia led the outflows, while Europe moved in the opposite direction. The May outflows represented a 1% drop in total assets under management (AUM) for these ETFs.

Gold Market Trends in May

The pullback coincided with a decline in gold prices during the first half of the month, falling from $3,390 per ounce to $3,190, before rebounding to close the month at $3,315. Liquidity in the global gold market remained strong throughout. Year-to-date, however, the overall balance remains positive, with net purchases exceeding 322 tonnes and inflows totaling approximately $30 billion.

Key Data Highlights:

• According to Bloomberg, ICE, WGC, and ETF managers, physically backed global gold ETFs lost $1.8 billion in May—the first monthly outflow since November. This, combined with a modest price dip, pushed total global gold ETF AUM down by 1% to $374 billion. Collective holdings dropped by 19 tonnes, bringing total holdings to 3,541 tonnes.
• Trading volumes for global gold ETFs remained solid, exceeding levels seen in previous years, despite a slight month-over-month dip.
• All regions posted outflows in May except Europe. North America experienced the most significant withdrawals, while Asia reversed its strong momentum from April. Europe saw modest inflows, and other regions posted small losses—their first in six months.
• In North America,y easing of U.S.-China tariffs, which boosted risk appetite and equity markets while reducing the demand for gold as a safe haven.
• Additionally, the Federal Reserve held interest rates steady during its May meeting, and minutes revealed a cautious stance amid ongoing inflation concerns and labor market risks.

ABOUT THE AUTHOR See More

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.

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