Global Gold ETFs Surge with $3 Billion Inflows Amid Market Uncertainty by Amit Gupta, Kedia Advisory
Global gold ETFs saw net inflows of $3 billion in January, driven by political uncertainties in Europe and weak equity markets. European funds led with $3.4 billion in inflows, while Indian ETFs recorded a historic $400 million inflow. Total ETF assets under management (AUM) rose to $294 billion. However, North America experienced a $499 million outflow, as investors took profits amid Trump’s inauguration. Gold trading volumes surged, averaging $264 billion per day. COMEX gold futures net long positions increased by 25%, driven by tariff-related fears and gold price strength. Investors turned to gold as a safe haven amid global economic and political instability.
Key Highlights
# Gold ETFs attracted $3 billion in net inflows in January.
# European and Indian funds led, while North America saw outflows.
# Total gold ETF AUM reached a record $294 billion.
# COMEX gold futures net long positions rose by 25%.
# Gold trading volumes increased 20% month-on-month.
Gold ETFs saw strong inflows in January, adding $3 billion amid heightened global uncertainties. European funds dominated with $3.4 billion, reversing last year’s outflows. Indian ETFs witnessed record inflows of $400 million, reflecting local investors' shift to safe-haven assets amid a declining equities market. However, North American investors continued to exit, recording $499 million in outflows.
The total gold ETF AUM hit a record $294 billion by January-end. COMEX gold futures net long positions rose by 25% month-on-month, reaching 952 tonnes. Money managers increased net longs by 26% to 717 tonnes, driven by growing fears over tariffs and geopolitical tensions. Gold trading volumes averaged $264 billion per day, marking a 20% increase from December, with COMEX seeing a 60% surge in activity.
Political instability in Europe fueled demand for gold ETFs. The UK and Germany saw significant inflows as investors responded to economic uncertainties and potential rate cuts. Germany's earlier-than-expected elections and concerns over US trade policies boosted safe-haven demand. France also experienced increased ETF inflows amid slowing economic growth and political instability.
Despite overall bullish sentiment, North American outflows reflected profit-taking activity. Investors initially increased positions ahead of Trump’s inauguration but quickly reversed gains as policy clarity emerged. While the US Federal Reserve's decision to keep rates unchanged had little impact, widespread tech stock selloffs contributed to renewed gold interest.
Finally
Gold ETFs continued to attract strong inflows amid global market volatility, with Europe and India leading the trend. Strong trading volumes and increasing long positions signal continued bullish sentiment in gold markets.
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