Gold ETF Flows: May 2025

Highlights

• 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 

May in review

Global physically backed gold ETFs¹ lost US$1.8bn in May, snapping their five-month inflow streak (Table 1).² The first monthly outflow since last November and a mild fall in the gold price saw global gold ETFs’ total assets under management (AUM) fall 1% to US$374bn. And collective holdings fell 19t to 3,541t. Despite May’s loss, global gold ETF flows have remained positive so far in 2025, at US$30bn. Holdings have also seen a cumulative rise of 322t during the period. 

All regions saw outflows in May except Europe. North America took the largest hit, and Asia reversed the strong momentum it experienced in April. Europe registered mild inflows, while funds in other regions experienced a small loss for the first time in six months. 

Regional overview

North America saw net outflows of US$1.5bn in May, the first negative month since January. The better-than-expected temporary easing of tariffs between the US and China improved investor risk appetite, which led to a strong rebound in equities, but lower safe-haven demand for gold.³ 

The US Fed kept rates steady at its May meeting; minutes showed a cautious stance towards rate decisions amid an outlook of persistent inflation and risks to the labour market.⁴ As a result, the market is now expecting higher rates by the end of 2025, leading to rising US Treasury yields and increasing the opportunity cost of holding gold. 

Although higher US Treasury yields have historically been negative for gold ETF demand,⁵ the current developments don’t necessarily spell bad news. For instance, intensifying stagflation concerns may lead investors to gold, as historically it has performed well during such periods.⁶ The newly proposed “One Big Beautiful Bill Act (OBBBA)” and Moody’s recent US sovereign credit downgrade have reignited investor concerns of US debt sustainability.⁷ And while this lifts US Treasury yields via rising term premiums, it could also benefit demand for gold as investors search for alternative safe havens. 

Europe experienced mild inflows, adding US$225mn in May. Inflows in France more than offset continued outflows from Germany and the UK. 

In fact, France has witnessed stable inflows over the past three months. We believe drivers of rising demand for gold ETFs in the country may be related to:

• Sluggish economic growth and weakening consumer sentiment⁸
• The Trump administration’s escalation of tariff threats which attracted gold ETF inflows across Europe in late May⁹
• Intensifying fiscal concerns¹⁰ and political instability.¹¹

Outflows in Germany may have been driven by cooling global trade uncertainty – which pushed up investor risk appetite – before Trump’s renewed tariff threats on Europe later in the month. Despite the Bank of England’s rate cut¹², lowering trade risks – as the UK reached a deal with the US¹³– cooled gold ETF demand. And weaker gold price performances denominated in local currencies may have also discouraged investors. 

Asia recorded outflows of US$489mn in May, the first monthly loss since November 2024. China led outflows as safe-haven demand diminished amid de-escalating trade tensions with the US and subsequent equity rebounds. The RMB gold price weakness further contributed to the outflow. And it is worth noting that Japan registered its eighth consecutive monthly inflow in May, albeit only modestly. 

Funds listed in other regions experienced minor outflows of US$27mn in May, ending the five-month inflow streak, mainly from Australia and South Africa.