Gold exchange-traded funds (ETFs) backed by physical gold experienced their largest semi-annual inflow since early 2020, according to data released by the World Gold Council (WGC) on Tuesday.
The ongoing trade war has driven investors to seek refuge in gold ETFs, which play a significant role in the demand for the precious metal amid political and economic uncertainty.
This vigorous activity in the first half of 2025 follows a modest net inflow in 2024, ending a three-year trend of outflows driven by high interest rates.
In the first half of this year, gold ETFs saw an inflow of $38 billion, with total holdings increasing by 397.1 metric tons of gold.
This brought total holdings to 3,615.9 tons by the end of June, the highest level since August 2022, although still below the record of 3,915 tons set in October 2020.
Funds listed in the U.S. led the inflow, accumulating 206.8 tons, while Asia-listed funds attracted 104.3 tons, the WGC reported.
“Despite a slowdown in momentum during May and June, Asian investors purchased a record amount of gold ETFs in the first half of the year, contributing a notable 28% to net global flows while representing only 9% of the world’s total assets under management,” the WGC noted.
Spot gold prices have surged 26% this year, reaching a peak of $3,500 per troy ounce in April.
