Global holdings in gold-backed exchange-traded funds (ETFs) have risen at the start of 2025 thanks to soaring European inflows. That’s according to latest data from the World Gold Council (WGC).
The organisation said gold funds had added 35 tonnes of material – worth some $3 billion – in January. This took total holdings to 3,253 tonnes, and assets under management (AUMs) to $294 billion.
Gold demand continues to soar as concerns over US President Trump’s policy agenda (and particularly concerning trade tariffs) have grown. The yellow metal’s up 11% since 1 January, and struck fresh record peaks around $2,914 per ounce earlier today.
European Flows Heat Up
The WGC said that inflows into European ETFs were chiefly responsible for January’s hefty inflows.
It noted that “European funds saw their largest monthly inflow since March 2022,” with strong demand in the UK and Ireland dominating trading activity.
Regional ETFs added 39 tonnes of material to take total holdings to 1,327 tonnes. AUMs rose $3.4 billion, to $120 billion.
On Germany, the WGC said that “political uncertainties ahead of the earlier-than-scheduled parliamentary elections in late February, [a]
pessimistic growth outlook from the government and risks related to US trade policies all contributed to higher safe-haven demand.”
Hopes of interest rate cuts triggered ETF inflows in the UK, the council noted, while political uncertainty in France also encouraged gold demand.
In Asia, holdings in gold-based funds rose 0.3 tonnes or $57 million in January. Total holdings and AUMs ended the month at 217 tonnes and $20 billion respectively.
The WGC said that Indian funds experienced record inflows last month, rising by $400 million. It commented that “investors redirected cash to gold amid ongoing global uncertainty and further weakness in domestic equity markets.”
However, it added that Chinese fund recorded outflows last month, as better-than-forecast growth data for the fourth quarter and 2024 on the whole boosted demand for riskier assets.
Second Monthly Outflow In North America
While ETF holdings rose across the rest of the world, North American funds reported outflows of six tonnes, or $499 million, in January.
This reduced regional holdings to 1,645 tonnes and AUMs to $149 billion.
The WGC said that “investors stayed busy this month particularly around President Trump’s inauguration, and the subsequent news that followed around tariffs, rates, and the dollar.”
But it added that “these flows quickly reversed in the week of Trump’s inauguration as investors likely captured profits amid a record-level gold price and from shifts in positioning as Trump began to release executive orders, while also providing colour on future policy decisions.”
WGC data last month showed global gold ETFs record their first inflows for four years in 2024. Combined with a surging gold price, this pushed AUMs 26% higher year on year, to then-record peaks of $271 billion.