International News
WGC Gold ETF commentary: Asia erupts as global momentum builds
April in review
Global physically backed gold ETFs1 added US$11bn in April, extending their inflow streak to five months (Table 1, p2).2 Supported by a higher gold price and continued inflows, global gold ETFs’ total assets under management (AUM) reached another month-end high of US$379bn. Meanwhile, holdings surged 115t to 3,561t, the highest since August 2022 and yet still 10% below the month end peak of 3,915t in October 2020.
Asia led inflows, accounting for 65% of the net global total – their strongest month on record. North American demand was also sizable while European flows flipped negative. Other regions continued to experience positive demand, albeit only mildly.
Highlights
Asia flows surged and North America also saw robust demand, while Europe witnessed mild outflows. The strongest inflow since March 2022 and the continued gold price surge pushed global gold ETFs’ AUM to US$379bn, 10% higher in the month. Global gold trading volumes rose significantly across all markets.
Regional overview
Asia experienced record breaking inflows during April, adding US$7.3bn, the strongest ever. The bulk of the demand came from China marking the third consecutive month of inflows and the strongest on record for the region. And more impressively, the April inflows have now surpassed those in Q1 and in full year 2024. In addition to the continued local gold price surge, demand was also driven by:
• The ongoing trade dispute with the US, which has raised fears of weaker growth, amplified equity volatility, and intensified expectations of the local currency depreciation
• Lower government bond yields, amid rising rate cut anticipations.
Global trade risks and the gold price surge also boosted gold ETF demand in Japan, their seventh consecutive month inflow. India also recorded steadily positive flows, following net outflows last month.
North American investors continued to buy gold ETFs, adding US$4.5bn in April. Although flows moderated compared to February and March, this month marked the second strongest April on record. And net cumulative flows through the first four months of the year have already outpaced 2020’s historical performance.
April and y-t-d 2025 regional flows* price momentum – albeit less pronounced compared to March – together with ongoing financial market turmoil amid trade policy uncertainties led investors in the region to gold.
Near-term momentum may ebb and flow, but expectations for continued market volatility – driven by concerns such as future trade policy and inflation – should provide a level of support to flows over the medium-to-long term.
Europe saw modest outflows of US$807mn in April, reversing course slightly. Outflows for the region were primarily concentrated in the UK, which were partially offset by inflows into Switzerland and France.
Nonetheless, the region witnessed healthy demand during most of April as the gold price rallied. Lower opportunity costs, fuelled by another rate cut from the ECB,3 and intensified expectations of a BoE reduction in early May 4 supported gold ETF buying. But late-month gold price declines sparked investor selling, likely profit-taking, erasing earlier gains. Sharp stock market rebounds may have further reduced gold’s appeal.
With the local currency strengthening against the dollar, FX hedged products, mainly in Switzerland, saw additional demand, curbing other outflows.
Funds in other regions posted their fifth consecutive month of positive demand (US$213mn) – Australia and South Africa continued to drive gold ETF inflows in the region.
Gold trading volumes boom
Global gold trading volumes across various markets rocketed in April, averaging US$441bn/day, 48% higher m/m. Amidst the strong gold price rally, all markets witnessed significant m/m rises in trading activities. LBMA OTC turnovers reached US$181bn/day, 31% higher m/m and notably higher than the 2024 average. Exchange-traded activities jumped by 67% compared to March, with the COMEX (+42% m/m) and the Shanghai Futures Exchange (+122% m/m) leading the charge. Although gold ETF trading volumes are smaller than other sectors, they saw the greatest m/m increase of all, surging 120%.
Total net longs of COMEX gold futures fell 30% m/m to 566t by the end of April. Net long positions held by money managers moved lower almost each week, reaching 360t by the end of the month and 35% below the 2024 average. This is mainly driven by a sharp decline in total longs – likely due to profit taking as gold refreshed new records – and a mild rise in shorts.
International News
Geopolitical Flashpoints and Macro Crosswinds Keep Bullion Markets In Check AUGMONT BULLION REPORT
Gold Increasingly Rivaling US Treasuries As A Preferred Reserve Asset For Central Banks Globally, For The First Time In Decades
Gold prices slipped below $4,700 and silver below $80, retracing a portion of last week’s gains after President Trump publicly rejected Iran’s diplomatic response as “TOTALLY UNACCEPTABLE,” keeping inflationary concerns elevated. Tehran had proposed relocating part of its highly enriched uranium stockpile to a third country while refusing to dismantle its nuclear infrastructure — a position Washington found insufficient.
Geopolitical conditions deteriorated further over the weekend, with renewed cross-border attacks threatening to unravel the fragile ceasefire established in early April. US Central Command confirmed that American forces intercepted Iranian strikes and conducted defensive operations, while guided missile destroyers transited the Strait of Hormuz. The US subsequently reported sinking several Iranian vessels in the strait on Monday, as Iran escalated with fresh missile and drone strikes against the UAE. The Strait of Hormuz remains effectively closed, sustaining elevated energy prices and amplifying inflation risk globally.
Persistent inflationary pressure has reinforced expectations that central banks may tighten policy further — a headwind that typically weighs on precious metals. The April NFP report, released May 8, delivered a significant upside surprise: 177,000 jobs added against a consensus of 65,000, though below March’s 185,000, signaling a gradual cooling trajectory. The unemployment rate held at 4.3%. Rate cut expectations have shifted to late 2027 or early 2028, limiting dollar weakness and capping gold’s near-term upside.
On the USDINR front, currency markets were highly volatile, driven by crude oil dynamics. The rupee depreciated to record lows near 95.2 per dollar on May 7 following a 6% crude oil surge after Iran’s military escalation and a strike on a UAE oil facility. The move constrained capital inflows and triggered a surge in importer hedging activity. India’s physical gold demand has weakened sharply. Imports declined from approximately 100 tonnes in January to 65–66 tonnes in February, fell further to 20–22 tonnes in March, and are estimated at just 15 tonnes in April — among the lowest monthly readings in decades outside the Covid period.
Sentiment last week reflected a tug-of-war between safe-haven demand and the hawkish overlay from elevated energy prices. Analytically, the most notable shift in the pre-NFP environment is a structural repricing of gold: the metal has transitioned from a data-reactive asset to one driven by fiscal sustainability, monetary policy credibility, and sovereign reserve allocation. While Fed hawkishness remains a short-term constraint, 2026 has been defined by what analysts are calling “The Great Bullion Pivot” — gold increasingly rivaling US Treasuries as a preferred reserve asset for central banks globally, for the first time in decades.
Gold has been trading within a $4,500–$4,750 range (approximately ₹148K–₹154K). Having tested the upper boundary last week, profit-booking pressure may push prices back toward the lower end this week. Silver has been ranging between $71–$82 (approximately ₹235K–₹265K), and similarly, having touched the top of its range, a reversion toward support levels is likely in the near term.
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