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

AI Summary

Chinese investors withdrew a record $2.91 billion from domestic gold ETFs in June, driven by profit-taking amid a rising stock market and a strong yuan. The World Gold Council noted a shift in local investor appetite towards higher-risk assets.

Chinese investors pulled a record US$2.91 billion out of domestic gold exchange-traded funds (ETFs) in June, taking profits as a stock-market surge and a strong yuan dimmed the appeal of the safe-haven metal, according to the World Gold Council (WGC). Mainland Chinese funds were the biggest drag on Asia’s gold ETFs in June, “as local investor risk appetite continued to improve”, prompting them to turn to higher risk, higher return assets, according to the findings of the council’s report...