March and Q1 in review

Global physically backed gold ETFs1 reported strong inflows in March totalling  US$8.6bn (Table 1, p2).2 This helped drive total Q1 flows of US$21bn (226t) to  the second highest quarterly level in dollar terms, only behind Q2 2020’s  US$24bn (433t). 

North America (61%) and Europe (22%) represented the bulk (83%) of net  inflows in Q1. Asia contributed 16% – impressive given that the region’s total  assets under management (AUM) only account for 7% of the global total. Additionally, first quarter flows in Europe of US$4.6bn stood out as the strongest  quarter since Q1 2020. As a result, and aided by gold’s price increase, AUM  reached another all-time-high of US$345bn, representing an increase of 13% in  March and 28% through the first quarter.

Additionally, collective holdings rose to 3,445t by the end of March, a 92t  addition in the month and 226t higher through Q1, reaching the highest month end level since May 2023 and 470t shy of the record of 3,915t in October 2020.

Highlights 

Global gold ETF inflows continued  in March, with positive demand  witnessed across all regions. 

After four monthly inflows in a row,  total AUM of global gold ETFs  reached another month-end peak  of US$345bn and holdings rose 3% to 3,445t.  

Global gold markets saw a mild  decline in volumes during March  amid cooling OTC activities.

Regional overview 

North American demand led global flows, adding US$6.5bn  and constituting 76% of total flows this month, and  US$12.9bn during the quarter. This move higher can be  attributed to familiar drivers:  

• the strong price momentum sent gold to above the  US$3,000/oz threshold 

• yields remained rangebound 

• the dollar slipped to levels not seen since last November • tariff and war uncertainty provided continued support.  

Additionally, equity pullbacks, due to growth concerns and  market liquidity worries amid ongoing quantitative tightening, further pushed up investor demand for safe haven assets.Also, increased option activity helped drive  US$2.1bn (22 tonnes) inflows at monthly expiry.

As a result, North American funds posted another strong  monthly performance, and the region solidified its significant  contribution to global quarterly flows.  

Europe saw sizable inflows, drawing US$1bn in March and  US$4.6bn during Q1. The rally this month stemmed primarily  from the UK, Switzerland and Germany. Although the Bank  of England made no changes to its benchmark rate during  its March meeting, a cloudy growth outlook further weighed  by US tariff concerns, weak stock market performance and  the gold price surge, drove demand higher in the UK.  Equally, despite a jump in the 10-year German Bund yield in  early March amid Germany’s massive spending plan,  investors in Europe continue to add gold ETFs to their  portfolios as the ECB’s March cut encouraged further easing  expectations⁶ and US tariff risks loom over the growth  outlook.  

Inflows were sustained for the fourth consecutive month in  Asia, attracting nearly US$1bn in March and US$3.3bn  through the first quarter. China and Japan dominated  demand in March, both likely driven by rocketing gold price  performances, which dwarfed other assets in the month, and  roaring global trade policy risks. Additionally, inflationary worries may have helped drive gold ETF inflows in Japan.  India saw mild outflows, ending its 11-month inflow streak as  investors may have booked profit. Funds in other regions  saw another month of positive demand, albeit only modestly  at US$98mn, as Australia and South Africa continue to  register gold ETF inflows. 

Gold trading volumes pullback

Trading activity across global gold markets in March came in  at US$266bn/day – broadly in-line with the quarterly average  of US$270bn/day. LBMA OTC trading of US$136bn/day,  resulted in a quarterly average of US$140bn/day. This marks  a notable increase when compared to the 2024 daily average  of US$113bn.

Exchange volumes continued to rise in March, with COMEX  taking the charge amid the strong gold price performance. Increased option activity supported North American ETF  volumes, but global gold ETF activities still fell mildly m/m. 

Total net longs of COMEX’s gold futures fell 3% to 804t by  the end of March. Net long positions held by money  managers remained relatively stable at 599t, down slightly  from 605t at the end of February. While money manager net  longs declined during the first half of March—likely due to  profit-taking—renewed interest driven by US trade policy  and geopolitical uncertainties led to increased exposure later  in the month. Notably, this rebound followed five consecutive  weeks of de-grossing that began in February, bringing net  longs just above year-end levels of 764 tonnes.