Buoyant bullion appetite in North America drove further inflows into gold-backed exchange-traded funds in March, according to the World Gold Council.
Global funds added 92 tonnes of material last month worth a total of $8 billion, the organization said.
The WGC noted that “after four monthly inflows in a row, total [assets under management, or AUM] of global gold ETFs reached another month-end peak of $345 billion and holdings rose 3% to 3,445 tonnes.”
Physical holdings ended March at their highest level since May 2023, the WGC said. The current record stands at around 3,915 tonnes recorded in October 2020 during the depths of the Covid-19 pandemic.
Bullion values rose more than 9% in March as concerns over trade tariffs and their effects on the global economy grew. Gold advanced to fresh peaks near $3,171 per ounce last week (April 3) after U.S. President Donald Trump announced higher-than-expected tariffs on trade partners.
They’ve since retraced and were last around $3,012 per ounce.
North America Leads The Way
ETF inflows were especially robust in North America in March, the WGC said. Funds added 67 tonnes month-on-month, which accounted for almost three-quarters of total global inflows.
These regional inflows were worth $6.5 billion, and pushed total AUMs to $179 billion. Some 1,784 tonnes of the yellow metal were locked up in North American funds at the end of March.
The WGC commented that these heavy inflows “can be attributed to familiar drivers: the strong price momentum sent gold to above the $3,000 per ounce threshold; yields remained rangebound; the dollar slipped to levels not seen since last November; [and]
tariff and war uncertainty provided continued support.”
The Council added that equity market weakness caused by growth and liquidity worries bolstered demand for flight-to-safety asset gold.
Europe Records Strong Flows
European ETFs also recorded sizable inflows, the WGC said, led by perky investor interest in the U.K., Germany and Switzerland.
Funds added 14 tonnes of the precious material worth a total $1 billion. This pushed total AUMs and physical holdings to $134 billion and 1,342 tonnes respectively.
In the U.K., the organization said that “although the Bank of England made no changes to its benchmark rate during its March meeting, a cloudy growth outlook further weighed by U.S. tariff concerns, weak stock market performance and the gold price surge, drove demand higher.”
It added that “investors in Europe continue to add gold ETFs to their portfolios as the ECB’s March cut encouraged further easing expectations and U.S. tariff risks loom over the growth outlook.”
Asia Joins The Party
Funds in Asia also rose last month, by 10 tonnes or $944 million. AUMs subsequently increased to $25 billion, while physical holdings grew to 251 tonnes.
The WGC commented that “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.”
It added that inflationary worries may have driven ETF inflows in Japan, and that profit-booking in India may have snapped 11 straight months of inflows there.
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