Something changed in European gold demand in July.
European gold ETFs attracted roughly $2 billion, making July their second-strongest month of inflows this year.
And the buying wasn’t concentrated in just one market. The UK alone added around $875 million, while Switzerland contributed another $657 million.
What I find most interesting is the timing.
European investors were selling gold through ETFs in June. Then the price weakened, and instead of continuing to exit, capital came back.
That looks less like chasing momentum and more like using weakness to increase gold exposure.
There’s another detail worth watching.
The inflows came while real yields on German government bonds were near 15-year highs. Normally, higher real yields make gold less attractive because investors can earn a real return elsewhere.
Yet European demand returned anyway.
Globally, gold ETFs attracted roughly $3 billion in July, with Europe leading all regions. Total holdings increased by 23 tonnes to around 4,068 tonnes.
When gold weakened, European investors didn’t simply walk away.
They bought the dip.
And with fiscal concerns, geopolitical uncertainty, and increasingly expensive government debt still in the background, I’ll be watching closely to see whether this trend continues.
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