Gold ETFs Shatter Quarterly Inflow Record
Data from the World Gold Council reveals that global gold exchange-traded funds (ETFs) attracted an unprecedented $31 billion in net inflows during the third quarter of this year. September alone contributed $10 billion to this total, underscoring sustained investor interest.
Holdings Climb Despite Price Weakness
In a notable trend, global physically-backed gold ETF holdings increased by 67 tonnes over the quarter, reaching an all-time high of 4,256 tonnes, even as the gold price declined. This suggests that current inflows are driven more by strategic, long-term allocation to gold rather than short-term tactical moves.
However, due to the lower gold price, the total assets under management (AUM) for the sector fell by 7% quarter-on-quarter to $574 billion, highlighting a temporary divergence between asset valuation and fund flows.
Regional Drivers: North America and Europe Lead
The record-breaking inflows were concentrated in two key regions:
- North America: Funds listed in the United States were the primary engine of global inflows.
- Europe: UK-listed funds delivered their strongest quarterly performance on record, powering the entire European region to a milestone level of inflows.
This pattern indicates that investors in developed markets are actively turning to gold ETFs to hedge against mounting macroeconomic uncertainties.