The World Gold Council writes that global gold-backed ETFs recorded net outflows of USD4.5 billion in July, as continued US dollar strength and softer inflation expectations weighed on investment activity.

Though this was the third consecutive month of outflows and July marked the largest monthly outflow since March 2021, total holdings remain 5 per cent higher year-to-date at 3,708t (USD209 billion).

Following a 75bp rate increase by the Fed, which helped propel the dollar index to a 20-year high, and a late-month rebound in equities, tactical North American investors were encouraged to shift into riskier assets.

As a result, the Council writes, North American funds accounted for the majority of gold-backed ETF outflows (-USD2.8 billion, 2.5 per cent) and gold fell 3.5 per cent in July, ending the month at USD1,753/oz.