Gold Market Structure and Trends

Global physically backed gold ETFs returned to inflows in April, adding US$6.6bn. All regions contributed, led by Europe (+US$3.7bn), with Asia (+US$1.8bn) and North America (+US$1bn) also recording notable inflows. Inflows into funds listed in other regions totalled US$106mn.

India’s gold demand rose 10% y/y to 151t in Q1, while nearly doubling in value to a record INR 2,275bn (US$25bn). Growth was led by investment demand, up 54% y/y to 82t, with bar and coin demand nearly matching jewellery consumption and ETFs hitting record highs. Jewellery volumes fell 19% y/y, but spending rose 47%. Investment demand is set to remain supportive, while jewellery demand may stay under pressure from inflation and economic headwinds.

US gold demand softened in Q1 2026 as a sharp reversal in ETF flows outweighed resilience across other segments. Physically backed US gold ETFs recorded sizeable monthly outflows in March, erasing inflows accumulated earlier in the quarter amid risk‑off conditions, elevated positioning and higher opportunity costs. Bar and coin investment provided a partial offset as retail interest remained resilient, while jewellery demand fell to a record quarterly low on affordability pressures. Despite near‑term volatility, ongoing geopolitical tensions, policy‑rate uncertainty and broader macroeconomic risks continue to support the longer‑term investment case for gold in the US.

Gold demand saw a modest y/y increase in Q1 to 1,231t, while value surged to a record US$193bn. Bar and coin investment drove gains, while ETF buying slowed in Q1. Central banks continued to buy in healthy size. Jewellery demand volumes remained under pressure amid record high prices.

Global physically backed gold ETFs saw a sharp reversal in March, recording record outflows of US$12bn, which halved Q1 inflows to US$12bn. Heavy selling was concentrated in North America, while European flows softened as the gold price fell mid‑month.

This paper proposes Gold as a Service: a shared infrastructure that would connect physical gold custody with digital issuance and product lifecycle management. By standardising core operating functions while preserving issuer competition, Gold as a Service aims to strengthen trust, reduce complexity, and enable digital gold to function as a coherent, interoperable asset class fit for a digital financial era.

Global physically backed gold ETFs saw another solid month in February, adding US$5.3bn – cementing the strongest two‑month start on record. North America led inflows (+US$4.7bn), Asia stayed firm (+US$2.3bn), while Europe (-US$1.8bn) lagged amid early‑month redemptions linked to the late-January precious metals sell-off.

Global physically backed gold ETFs posted a record month in January, attracting US$18.7bn as all regions reported positive flows. North America (+US$6.8bn) and Asia (+US$9.6bn) led global demand: Asia marking its strongest month ever and accounting for over half of global inflows.