North America leads gold ETF inflows with record 92 tonnes in March

In March 2025, gold-backed exchange-traded funds experienced significant inflows across various global markets, with North America emerging as the dominant region. According to the World Gold Council, global funds added 92 tonnes of gold, reaching a total worth of approximately $8 billion during the month. This surge in demand pushed total assets under management (AUM) of global gold ETFs to a peak of $345 billion, marking the highest level of holdings since May 2023. The increase in physical holdings was attributed to various economic uncertainties influencing investor behavior. The United States played a critical role in this upsurge, contributing nearly three-quarters of total global inflows with 67 tonnes, which amounted to around $6.5 billion. The decision by U.S. President Donald Trump to increase tariffs on trade partners created a ripple effect in the market, which saw bullion values rise over 9% in March. The gold prices peaked in early April, reflecting investors’ inclination towards more stable assets amidst looming trade tensions and a declining U.S. dollar. Simultaneously, European ETFs also reported substantial inflows, particularly from investors in the United Kingdom, Germany, and Switzerland. The European funds added 14 tonnes valued at $1 billion, with total assets under management reaching $134 billion at the month's end. As concerns over the economic outlook persisted, driven in part by trade uncertainties, demand for gold in these markets continued to grow. The Bank of England's decision to maintain interest rates further increased investor appetite for safer investment options like gold. Asia joined the trend with a smaller increase, adding 10 tonnes to the total gold reserves, which generated approximately $944 million for local funds. The appetite for gold in Asia was primarily driven by significant demand from China and Japan, where inflationary concerns prompted investors to seek refuge in gold rather than more volatile assets. However, profit-taking in India after 11 months of continuous inflows reflected a nuanced response to regional market conditions. Overall, the combination of strong price momentum in gold, uncertainties surrounding trade policies, and general economic anxiety underpinned the remarkable growth in gold ETF holdings throughout March 2025, highlighting a robust shift in investment strategies towards gold as a safe-haven asset.