Gold ETF Flows: January 2025

Highlights

• Global gold ETFs kicked off 2025 with positive flows, led by Europe, while North America saw outflows.
• Following the second consecutive monthly inflow and supported by a higher gold price, global gold ETFs’ total AUM rose to US$294bn and holdings bounced to 3,253t.
• Global gold trading volumes rose 20% in January, driven by increased OTC and exchange volumes.

January in review

Global physically backed gold ETFs¹ saw net inflows during the first month of 2025, adding US$3bn in January (Table 1).² The most notable shift comes from Europe: while it led global outflows during most of 2024, it is now dominating inflows. Despite gold’s strong performance, North American investors remained net sellers of gold ETFs in the month, while Asia and the other regions saw limited inflows. By the end of January, the total asset under management (AUM) reached US$294bn, another month-end record, and collective holdings continued to rebound (+34t).

Regional overview

North American funds slide for two consecutive months, losing US$499mn in January. Investors stayed busy this month particularly around President Trump’s inauguration, and the subsequent news that followed around tariffs, rates, and the dollar. Heading into the inauguration we saw increased option activity and positive flows into North American funds, along with a rising gold price. However, 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.

A pick-up in demand into the last week of the month was unable to offset earlier outflows. The final week of the month saw the US Fed keep rates unchanged as expected, which had limited impact on investor expectations of yields.³ But we believe the rattled equity market – particularly widespread tech stock selloffs related to the AI buzz around DeepSeek – and the gold price’s record-breaking performance attracted investor attention.⁴

European funds saw their largest monthly inflow since March 2022, adding US$3.4bn during January. UK and Germany dominated inflows. In the UK, government bond yields fell notably during the second half of January as easing inflation pressure and soft economic data prints raised investor expectations for rate cuts from the Bank of England during 2025.⁵ Reduced opportunity cost of holding gold, alongside a robust gold price performance, drove local investors into gold ETFs.

In Germany, political uncertainties ahead of the earlier-than-scheduled parliamentary elections in late February, pessimistic growth outlook from the government and risks related to US trade policies all contributed to higher safe-haven demand, drawing local investors to gold.⁶ France, which too faces political instability and weaker growth prospects, also experienced notable inflows as investors sought safe-haven assets.

Asian funds added US$57mn in January, mainly from Indian funds. Indian gold ETFs experienced record inflows (+US$400mn) in January, as investors redirected cash to gold amid ongoing global uncertainty and further weakness in domestic equity markets. Yet China saw notable outflows: the stronger-than-expected Q4 and 2024 GDP growth may have raised investor risk appetite, limiting expectations of future rate cuts and supporting the local currency. As a result, alongside potential profit-taking activities, investors dialled back their gold ETF holdings. Funds in other regions saw inflows of US$66mn, driven primarily by Australia and South Africa.