Chinese profit-taking triggers record gold ETF outflows amid shift to equities

Chinese investors withdrew a record $2.91 billion from domestic gold ETFs in June, according to the World Gold Council. This significant outflow was driven by investors taking profits as a surge in the stock market and a strong yuan reduced the attractiveness of gold as a safe-haven asset. Mainland Chinese funds were the primary factor behind Asia's gold ETF outflows for the month. The shift occurred as local investor risk appetite improved, leading them to favor higher-risk, higher-return investments. This move also contributed to a weakening of the gold price in renminbi terms, following a period where China had led global gold ETF inflows in the preceding months.