Gold ETFs See Largest Global Inflow Since 2020 Amid Trade Tensions

Gold exchange-traded funds (ETFs) experienced significant inflows in June 2025 and the first half of the year, driven by investor demand for safe-haven assets amid geopolitical uncertainties and volatility in equity and fixed income markets. In India, Gold ETFs recorded net inflows of ₹2,080.85 crore in June, the highest monthly figure since January, signaling a recovery after muted flows earlier in the year, according to AMFI data. Globally, physically backed gold ETFs attracted $38 billion during the first half of 2025, marking the largest semi-annual increase since early 2020, with U.S.-listed ETFs leading the gains and Asian funds contributing notably despite their smaller share of global assets. The surge in gold ETF holdings coincides with a 26% year-to-date rise in spot gold prices, which hit a record $3,500 per ounce in April. This increased demand is linked to renewed geopolitical and economic uncertainty, including the trade war driven by President Trump’s tariff policies, underscoring gold's appeal as a diversification and safe-haven investment. The World Gold Council highlighted the strong inflows and rising holdings, noting this trend reflects a rebound from years of outflows caused by higher interest rates.