In March, global inflows into gold ETFs continued with positive demand across all regions. After four consecutive months of inflows, total assets under management (AUM) of gold ETFs reached a new peak of US$345 billion, with holdings up 3% to 3,445 tonnes. Global gold markets experienced a slight decline in volumes during March due to a reduction in OTC (Over-The-Counter) activity, which refers to transactions that take place outside of regulated exchanges.
Global physical-backed gold ETFs reported strong inflows in March, totaling US$8.6 billion. This boosted first quarter flows to US$21 billion (226 tonnes), the second highest quarterly level in dollar terms, behind only the second quarter of 2020. North America (61%) and Europe (22%) accounted for most of the net inflows in the first quarter. Asia contributed 16%, highlighting its share considering that its AUM only represents 7% of the global total. Inflows in Europe reached US$4.6 billion, the strongest quarter since the first quarter of 2020. Thanks to the rising gold price, AUM reached a new all-time high of US$345 billion, up 13% in March and 28% during the first quarter. Holdings rose to 3,445 tonnes at the end of March, an increase of 92 tonnes for the month and 226 tonnes during the first quarter, reaching the highest level since May 2023.
North American demand led global flows with US$6.5 billion in March and US$12.9 billion during the quarter. This increase is attributed to several factors: the gold price rose above US$3,000 per ounce, yields remained stable, the dollar fell to low levels, and tariff and war uncertainty provided continued support. Equity declines and increased options activity also boosted demand for safe-haven assets.
Europe recorded inflows of US$1 billion in March and US$4.6 billion during the first quarter, mainly in the UK, Switzerland and Germany. Factors such as the gloomy growth outlook, tariff concerns in the U.S., weak stock market performance and rising gold prices drove demand.
Asia maintained inflows for the fourth consecutive month, attracting nearly US$1 billion in March and US$3.3 billion during the first quarter. China and Japan dominated demand, driven by rising gold prices and global trade policy risks. Inflation concerns may also have influenced Japan. India recorded moderate outflows, ending its 11-month streak of inflows.
Other regions, such as Australia and South Africa, recorded modest inflows of US$98 million in March.
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