LONDON (Reuters) – Physically backed gold exchange-traded funds (ETFs) registered the largest quarterly inflow in three years in January-March, 2025, data from the World Gold Council (WGC) showed on Tuesday.
Investors seeking shelter from political and economic volatility were moving into gold ETFs, which store bullion for investors, in the first quarter.
A global trade war, sparked by U.S. President Donald Trump, intensified earlier this month after he announced sweeping tariffs on most U.S. imports, stoking fears of a recession, sending jitters across global financial markets and drawing condemnation from leaders around the world.
Gold ETFs saw an inflow of 226.5 metric tons worth $21.1 billion in the first quarter, the largest amount since the first quarter of 2022, when global markets were grappling with the immediate consequences of Russia’s invasion of Ukraine.
This raised their total holdings by 3% to 3,445.3 tons by the end of March, the largest since May, 2023. Their record was 3,915 tons in October, 2020.
U.S.-listed funds led the inflow with 133.8 tons in the first quarter, while Europe-listed funds drew 54.8 tons, WGC added.
The active start of the year follows a modest net inflow to gold ETFs in 2024 after three years of outflows caused by high interest rates.
(Reporting by Polina Devitt; Editing by Sharon Singleton)
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