Global gold ETFs experienced a significant downturn in the first half of 2024, with a net outflow of $6.7 billion, marking the worst first-half performance since 2013. Total holdings decreased by 120 tonnes (-3.9%) to 3,105 tonnes. While Asian funds attracted a record $3 billion, they were overshadowed by $9.8 billion in outflows from North America and Europe. This trend is attributed to high interest rates and a risk-on sentiment driven by the AI boom in Western markets, which outweighed the typical positive correlation between gold prices and investment flows. Conversely, Asian investors were drawn to gold due to weaknesses in non-dollar currencies and gold’s strong performance in those currencies.