Global physically backed gold ETFs drew $18 billion in August, their second-largest monthly inflow on record, according to the World Gold Council. Holdings increased by 121 tonnes to 4,189 tonnes, while assets under management rose 16% to $615 billion. North American and European funds led demand, attracting $7.7 billion and $7.9 billion, respectively, while Asian funds brought in another $2 billion. The renewed buying accompanied a 13% monthly rise in gold, its strongest performance since January, amid stronger momentum, concerns about U.S. debt and stress in the Treasury market. The People’s Bank of China added 20.2 tonnes in August, bringing its official holdings to 2,387 tonnes after 22 consecutive months of increases. The purchase nearly doubled the 10-tonne increase recorded in May and lifted gold to roughly 9% of China’s foreign-exchange reserves. Physical-market activity remained weak, with Shanghai Gold Exchange withdrawals declining 22% month over month and 27% year over year to 62 tonnes. Chinese gold ETFs added 11 tonnes, taking their holdings to 293 tonnes, suggesting institutional and central-bank demand is playing a larger role than jewellery buying. Coinpaper’s recent coverage has linked gold’s growing appeal to high sovereign borrowing costs and macroeconomic uncertainty.