Gold exchange-traded funds (ETFs) have experienced a significant inflow of investment in recent days, with a total of $1.5 billion flowing into these funds on a single day in July. This marks the largest single-day inflow since March, when gold ETFs saw a similar surge in investment. The total amount of gold held by ETFs is now back to levels seen in June, indicating a renewed interest in the precious metal among investors.

The increase in gold ETF inflows can be attributed to a number of factors, including geopolitical tensions, central bank actions, and economic uncertainty. As investors seek safe-haven assets during times of market volatility, gold has traditionally been seen as a reliable store of value and hedge against inflation.

The resurgence in gold ETF inflows is also notable given the recent performance of the yellow metal. In June, gold prices hit a three-month high, with investors snapping up the metal on expectations of a global economic slowdown. This trend has continued into July, with gold prices reaching new heights and investors showing no signs of slowing down in their appetite for the precious metal.

The growth in gold ETF assets is also being driven by institutional investors, who are increasingly turning to these funds as a way to gain exposure to the gold market without having to physically hold the metal. This shift towards passive investment strategies has been seen across various asset classes, including stocks and bonds, and is expected to continue in the coming months.

The recent surge in gold ETF inflows is a clear indication of investor appetite for the precious metal during times of market volatility. With geopolitical tensions remaining high and economic uncertainty set to continue, it’s likely that gold will remain a popular safe-haven asset among investors. As such, gold ETFs are likely to continue attracting significant investment in the coming months.