In March, global gold ETF inflows continued to see positive demand across all regions. After four consecutive months of inflows, total assets under management (AUM) for gold ETFs reached a new peak of US$345 billion, with holdings increasing by 3% to 3,445 tons. Global gold markets experienced a slight decline in volumes during March due to a reduction in OTC (Over-The-Counter) activities, which refer to transactions that take place outside regulated stock markets.

Physically backed gold ETFs worldwide reported strong inflows in March, totaling US$8.6 billion. This boosted first-quarter flows to US$21 billion (226 tons), the second-highest quarterly level in dollar terms, behind only the second quarter of 2020. North America (61%) and Europe (22%) accounted for the majority of net inflows in the first quarter. Asia contributed 16%, highlighting its share considering that its AUM only represents 7% of the global total. Flows in Europe reached US$4.6 billion, the strongest quarter since the first quarter of 2020. Thanks to the rise in the price of gold, AUM reached a new all-time high of US$345 billion, an increase of 13% in March and 28% during the first quarter. Holdings increased to 3,445 tons at the end of March, an increase of 92 tons for the month and 226 tons during the first quarter, reaching the highest level since May 2023.

North American demand led global flows with US$6.5 billion in March and US$12.9 billion during the quarter. This increase is attributed to several factors: the price of gold exceeded US$3,000 per ounce, yields remained stable, the dollar fell to low levels, and tariff and war uncertainty provided continued support. Stock declines and increased options activity also drove demand for safe-haven assets.

Europe recorded inflows of US$1 billion in March and US$4.6 billion during the first quarter, mainly in the United Kingdom, Switzerland, and Germany. Factors such as the gloomy growth outlook, tariff concerns in the US, weak stock market performance, and rising gold prices drove demand.

Asia saw inflows for the fourth consecutive month, attracting nearly US$1 billion in March and US$3.3 billion during the first quarter. China and Japan dominated demand, driven by rising gold prices and global trade policy risks. Inflation concerns may also have played a role in Japan. India saw moderate outflows, ending its 11-month streak of inflows.

Other regions, such as Australia and South Africa, recorded modest inflows of US$98 million in March.

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