The Shanghai Gold Exchange reported that May gold withdrawals plummeted to 63.5 tonnes, a level not seen since February 2020. This data confirms a cooling trend that extends beyond exchange-traded funds to the equities market, where Hong Kong-listed gold producers suffered a broad-based selloff. China National Gold International Resources and Jihai Gold led the decline with a 3.6% drop, while Zijin Mining and Shandong Gold saw losses nearing 3%.

This volatility suggests a fracturing of the consensus that previously treated every price dip as a buying opportunity. Despite the current exodus from ETFs and the contraction in physical demand, analysts remain divided on the long-term outlook. While the immediate market environment reflects heightened uncertainty, industry insiders maintain that the strategic appeal of gold as a long-term asset has not yet evaporated.