If gold flows into ETFs are any indication, US investors are finally jumping on the gold bandwagon.
Last week, 48.8 tons of gold flowed into North American-based gold-backed funds. The last time we saw weekly flows at that level was in April 2020, when governments were locking down economies during the COVID-19 pandemic.
Mike McGlone, senior commodity analyst at Bloomberg Intelligence, noted that total ETF holdings have rebounded to their highest level since early 2024.
"It's not surprising to expect a shift toward gold ETF inflows in 2025, especially if there is a small reversal in the rapidly rising US stock market and high interest rates.”
Gold inflows into ETFs can have a significant impact on the global gold market by increasing overall demand.
A gold ETF is backed by a trust company that owns the metal it holds and stores the trust. In most cases, investing in an ETF does not entitle you to any amount of physical gold. You own a share of the ETF, not the gold itself.
ETFs are a convenient way for investors to invest in the gold market, but owning ETF shares is not the same as owning physical gold.
Gold bulls are running
After rising 26.5 percent in 2024 and reaching 40 all-time highs, gold's bullish rally continued in 2025. The price has risen to over $2,950, breaking several more records along the way.
It is interesting to note that during this bullish streak, there has been a break from traditional market dynamics, with gold rising despite higher interest rates. Normally, a higher interest rate environment creates obstacles for the yellow metal because it is an asset that does not generate returns.