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Informist, Thursday, Apr. 9, 2026

MUMBAI – Global inflows into physically backed gold exchange-traded funds halved in the March quarter due to a record monthly outflow of $12 billion in March, driven largely by heavy selling in North America, the World Gold Council said in a report. Prior to the hefty outflow in March, global gold ETFs were on track for their strongest quarter on record, the council said. However, strong and sustained inflows from Asia helped offset the heavy outflow, extending the global inflow streak to a seventh consecutive quarter.

 

In March, ETF holdings saw their steepest monthly drop since September 2022, though total holdings still increased by 62 tonnes over the first quarter. "Despite the pullback in the gold price, global gold ETFs ended the quarter with US$606bn ($606 billion) in assets under management, 9?ove FY25 (2024-25 Apr-Mar) levels. Notably, Asia posted its largest quarterly inflow on record, with positive flows in March helping to offset weakness elsewhere," the council said. 

 

In March, North America recorded an outflow of $13 billion, ending a nine-month streak of inflows. Selling pressure persisted throughout the month and the market saw the largest monthly outflow on record, leaving North America as the only region to post net outflows in Jan-Mar. "As noted last month, North America has experienced only two other periods with at least nine consecutive months of inflows – during the Global Financial Crisis and the COVID19 pandemic," the council said.  

 

Outflows in North America were due to broader riskoff conditions as the US attacked Iran on Feb. 28. The military operation weighed on most assets except oil, which likely prompted US investors to raise liquidity by selling prior winners such as gold. At the same time, the US dollar strengthened, and interest rates moved higher, while rate expectations shifted materially from potential cuts in 2026 to rates now expected to remain unchanged through September 2027, adding uncertainty and weighing on gold demand.

 

In March, European funds saw an outflow of $154 million, reducing the region's total Jan-Mar inflows to $27 million. Germany, Italy, and France led the monthly selling. "Flows closely tracked gold price movements: sizable outflows dominated the second half of March as prices fell, while modest inflows reemerged toward monthend alongside a price rebound," the council said.

 

Inflation concerns due to the West Asia war prompted the European Central Bank to keep rates unchanged while hinting at possible hikes. Rising inflationary pressures and a more hawkish policy stance pushed regional yields higher, increasing local investors' opportunity costs of holding gold. 

 

Asian gold ETFs added $2 billion in March, the seventh consecutive month of inflows. This pushed Jan-Mar inflows to a record $14 billion, led by China amid safe-haven demand, a drop in equity markets, and a weaker currency. India also contributed, with inflows of $177 million in March and $3 billion for the first quarter.

 

Other regions saw modest outflows of $27 million, mainly driven by Australia. Total inflows during the first quarter in other regions were $285 million. Despite heightened gold price volatility, Australian and South African holdings remained relatively resilient, with only minimal outflows during the month.

 

Meanwhile, trading volumes in the global gold market rebounded in March, averaging $525 billion, 11% higher on month. Despite the sharp price pullback during the month, liquidity remained ample across all market segments, the council said.  End

 

US$1 = INR 92.76

 

Reported by Reshma Ravi

Edited by Avishek Dutta

 

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