Gold exchange-traded funds (ETFs) witnessed strong positive inflows totaling $38 billion during the first half of 2025, marking their best half-year performance since H1 2020, according to a report released Tuesday by the World Gold Council.
The report noted that the sharp rise in gold prices, coupled with robust inflows, contributed to a 41% increase in total assets under management (AUM) for gold ETFs, reaching a record high of $383 billion by the end of June.
Total gold holdings by these funds grew by 397 tonnes during the first half of the year, bringing the total to 3,616 tonnes—the highest month-end level since August 2022. The average daily liquidity of the global gold market reached $329 billion during this period, the highest since 2018.
All regions recorded positive inflows in June, with North American and European investors leading the way. North American funds saw their strongest half-year performance in five years, attracting $4.8 billion in June alone—the largest monthly inflow since March—bringing the region’s H1 total to $21 billion.
The surge in demand was largely driven by escalating geopolitical tensions, particularly the ongoing Iranian-Israeli conflict, prompting investors to seek safe-haven assets, with gold at the forefront.
Although the Federal Reserve kept interest rates unchanged in June, persistent concerns over slowing growth and elevated inflation further supported investor appetite for gold. Market forecasts suggest the possibility of three rate cuts by the end of 2025, with two additional cuts expected in 2026.
In Asia, despite a slowdown in momentum during May and June, investors recorded record purchases of gold ETFs, accounting for 28% of global net inflows and 9% of global AUM.
Meanwhile, in Europe, inflows turned positive in the first half of 2025 for the first time since H2 2022, following a series of consecutive half-year losses, according to the World Gold Council.
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