Gold-backed exchange-traded funds (ETFs) worldwide recorded their fifth consecutive month of positive inflows in October 2025, supported by strong investor demand in the United States and Asia, while European funds saw sharp outflows, according to the latest data from the World Gold Council (WGC).
Despite a modest decline in gold prices toward the end of the month, global investors continued channeling liquidity into gold assets as a safe-haven hedge against market volatility and falling bond yields.
Strong Global Performance Amid Regional Divergence
Global gold ETF inflows reached $8.2 billion in October, pushing total assets under management (AUM) to a record $503 billion — the highest level ever recorded.
Gold holdings rose by 1% to 3,893 tonnes, while average daily trading volumes jumped 45% month-on-month to $561 billion, reflecting renewed market activity across exchanges.
North America Leads the Inflows
The United States and Canada accounted for the largest share of global inflows, totaling $6.5 billion during October — marking five straight months of growth.
The report noted that gold hit its 50th record high of 2025 on October 20 before falling 5% the next day. However, investors did not exit positions; instead, they increased their holdings, demonstrating strong institutional confidence and a sustained strategic appetite for the metal.
The WGC attributed this momentum to rising geopolitical risks, declining U.S. bond yields, and persistent overvaluation in equity markets, which collectively bolstered demand for gold in North America.
Europe Posts Second-Largest Outflow in History
Conversely, European gold ETFs saw significant redemptions totaling $4.5 billion in October — the second-largest monthly outflow in the region’s history.
The UK accounted for the majority of withdrawals ($3.5 billion), followed by Germany ($1.1 billion), while Switzerland remained the only market with modest positive inflows.
The report linked this exodus to portfolio rebalancing and profit-taking after the mid-month price rally that saw gold hit multiple new highs.
Asia Maintains Strong Growth
Asian markets recorded their second-strongest month on record, attracting $6.1 billion in inflows — largely driven by China, which alone added $4.5 billion.
The report attributed the surge to renewed U.S.–China trade tensions and slowing Q3 economic growth, both of which reinforced domestic demand for gold as a hedge against uncertainty.
Japan and India also posted positive inflows, while Australia added $203 million and South Africa saw a mild outflow of $118 million.
Record Trading Volumes
Global daily gold trading volumes surged to $561 billion, up 45% from September — the highest level in 2025.
Breakdown by category:
Exchange trading (COMEX, Shanghai): +59% to $300 billion/day
OTC markets: +28% to $245 billion/day
Gold ETFs: doubled to $17 billion/day, with 75% of activity in U.S. markets
In volume terms, average daily traded gold rose to 4,287 tonnes, up 31% from September, nearing the record of 4,251 tonnes set in April.
The World Gold Council emphasized that gold remains a core strategic asset within global investment portfolios, even amid waves of profit-taking in Europe.
The report highlights that rising political risks, weakening major currencies, and lower bond yields have strengthened gold’s position as a safe-haven store of value, with positive inflows expected to continue through the end of the year.
Global gold-backed ETFs are on track to register their strongest year on record in terms of inflows and market liquidity, supported by robust demand in Asia and North America and historically high trading volumes.
Despite short-term price corrections, investor confidence in gold as a strategic asset remains a defining feature of the global financial landscape in 2025.
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