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Gold fell 1% in May, ETFs lost $2 bn, and central banks keep buying at a faster pace – see the numbers and market impact.
Gold slipped 1% in May, while globally‑backed physical gold ETFs shed US$2 bn of assets, pushing total ETF AUM to US$604 bn and holdings to 4,121 t, just shy of the February peak of 4,176 t【1】. The move comes as risk sentiment stayed positive and investors brace for possible Fed rate hikes.
| At a glance | |
|---|---|
| Price change | –1% in May |
| ETF outflow | –US$2 bn (global) |
| ETF AUM | US$604 bn (down 2%) |
| Holdings | 4,121 t (‑55 t from Feb peak) |
The 1% price decline coincided with modest global gold ETF outflows, the first net withdrawals since early 2024. Europe was the only region to record inflows, adding US$334 mn, while Asia and North America posted the biggest outflows at US$1.2 bn and US$1.1 bn respectively【1】. The net outflow trimmed ETF assets under management by 2% and reduced physical holdings by about 55 t, keeping the total just below the February high of 4,176 t.
Even as ETFs lost money, central banks have been accelerating gold purchases. Over the past four years they have accumulated an average of 1,000 t per year, double the 500 t average of the preceding decade【1】. This steady accumulation helps sustain the overall above‑ground stock, which the World Gold Council estimates at 219,891 t at the end of 2025, with 38,666 t held by central banks【2】. The contrast between private investor outflows and sovereign buying underscores a split between short‑term market sentiment and longer‑term reserve strategies.
The May dip shows how quickly investor sentiment can shift gold prices, even as central banks continue to build reserves. Whether the Fed’s tightening trajectory or a change in ETF flows will tip the balance remains to be seen.
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 3 outlets · Jun 24, 2026 · How we report
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