West won’t rest – Q3 breaks records

Global physically backed gold ETFs recorded their largest monthly inflow in September (US$17bn), resulting in the strongest quarter on record of US$26bn. North American (US$10.6bn) and European funds (US$4.4bn) drove the bulk of inflows. Followed by Asia (US$2.1bn) and other regions (US$175mn). Supported by a rallying gold price, global gold ETFs’ total AUM rose 23% q/q to US$472bn, reaching another record, and holdings rose 6% q/q to 3,838t.

Risks channel August inflows West

Global physically backed gold ETFs saw inflows three months in a row, adding US$5.5bn in August. North American and European funds led inflows while Asia experienced continued outflows. Supported by continued inflows and a higher gold price, global gold ETFs’ total AUM rose 5% to US$407bn, another month-end record. Meanwhile, holdings rebounded 53t to 3,692t.

US and Europe anchor July inflows

Global physically backed gold ETFs saw continued inflows, adding US$3.2bn in July, mainly from North America and Europe. Continued inflows and a higher gold price pushed global gold ETFs’ total AUM 1% higher to US$386bn whilst holdings rose by 23t to 3,639t.

US Gold Demand Trends Q2 2025

US demand fell 34% q/q to 124t, but the decline was partially offset by strong gold-backed ETF demand. NA ETF inflows reached $21bn in H1 and are currently on pace for their second strongest year on record. Bullion exports started the year off strong with the US exporting ~268t through May, and are on pace to surpass 2024 volumes.

Gold Demand Trends: Q2 2025

A second quarter of significant investment in gold-backed ETFs, along with elevated bar and coin buying, drove total Q2 gold demand up 3% y/y to 1,249t. Meanwhile, jewellery consumption weakened further in the face of record gold prices.

June inflows boost H1 strength

A positive June pushed global physically backed gold ETFs’ inflows during the first half to US$38bn, the strongest semi-annual performance since H1 2020. Total AUM surged 41% to US$383bn, while holdings increased by 397t to 3,616t. 

Momentum eases in May

Global gold ETF flows flipped negative in May (-US$1.8bn): North America (-US$1.5bn) and Asia (-US$489mn) led outflows while Europe witnessed inflows (+US$225mn). Global gold ETFs’ total AUM fell 1% to US$374bn amid the May outflow. Meanwhile, holdings lowered by 19t to 3,541t. Global gold market liquidity remained elevated despite a m/m fall.

Gold: an HQLA in all but name

In recent months, amid trade policy uncertainty, financial markets experienced a decidedly volatile period marked by sharp declines in stock prices. Against this backdrop, gold showed itself to be a highly liquid and orderly market that mitigates market risk in a manner often associated with High-Quality Liquid Assets (HQLAs). During this period, gold’s volatility, bid-ask spreads, and trading volumes were equivalent to and, in some cases, better than intermediate and long-term US Treasuries.

Why gold in 2025? A cross-asset perspective

As we entered 2025, expectations for the US economy were at their highest compared to the previous two years and there was widespread belief that strong growth and significant asset-price increases would continue in 2025. Investors are now growing increasingly concerned over the growth and inflation outlook, both at the US and global levels, from the fallout of the ongoing trade war.

Asia erupts as global momentum builds

Global physically backed gold ETFs saw strong inflows of US$8.6bn (92t) in March, bringing Q1 totals to US$21bn (226t)—the second strongest quarter on record. North America and Europe drove 83% of net inflows in the quarter. Boosted by rising gold prices and strong inflows, global AUM hit a record US$345bn, with holdings (3,445t) reaching their highest level since May 2023.