Gold ETF Flows: February 2025

Highlights

• Global gold ETFs saw continued inflows during February as holdings across all regions grew.
• The third consecutive monthly inflows lifted global gold ETFs’ total AUM and collective holdings by 4.1% and 3.1% respectively in the month.
• Global gold trading volumes kept rising: OTC markets led the charge.

February in review

Global physically-backed gold ETFs¹ saw significant inflows in February totalling US$9.4bn, the strongest since March 2022 (Table 1).² North American flows flipped positive following two consecutive monthly outflows, recording one of its strongest months on record. Asian demand was also strong while European inflows narrowed. We have now seen three consecutive months of strong global inflows which, combined an upward trending gold price, have lifted total assets under management (AUM) to US$306bn, another month-end peak. Meanwhile, holdings rose to 3,353t, the highest month-end level since July 2023.

Regional overview

North American demand surged in February, adding US$6.8bn. This was the largest single month inflow for the region since July 2020 and the strongest February ever. As physical shipments into COMEX vaults from London and other markets made headlines, the positive gold market momentum also benefited North American gold ETFs. 

But there were other important contributors. For instance, US Treasury rates trended down with various economic signals flashing red.³ Lower yields, alongside a weaker dollar, boded well for the gold price during most of the month – in fact, it reached nine new record highs in February before moving lower in the latter half.⁴ We believe reduced opportunity costs and a record-shattering gold price were key in attracting inflows. Moreover, a pullback in equity markets and fears of stagflation were also likely positive drivers of demand. Lastly, we have observed significant inflows triggered by gold ETFs’ options expiry, signalling further bullish sentiment from investors. 

While we would not be surprised to see a slowdown in momentum, ongoing recession concerns and policy uncertainties – geopolitical and economic – will likely continue to provide a supportive floor for demand.

Europe saw modest inflows of US$151mn in February. The UK saw mild outflows while Germany and Switzerland continued to book gains. Despite the Bank of England’s 25bps cut in the month, the faster-than-expected inflation acceleration in January may have cooled investor expectation for further cuts and pushed local yields higher.⁵

In contrast, expectations for continued cuts from the European Central Bank this year have intensified amid the on-course disinflation progress and slower growth.⁶ This might have been a key factor underpinning inflows into other European gold ETFs. Additionally, heightened uncertainty during the run up to the German federal election in late February may also have provided support. 

Asian investors bought gold ETFs aggressively in February, collecting US$2.3bn. China led inflows: despite positive equity market sentiment – particularly around AI stocks amid the DeepSeek frenzy – the surging local gold price was attention-grabbing. In fact, the Baidu Search Index of the keyword “gold” rocketed to its highest since 2013.⁷ Indian gold ETFs maintained healthy inflows, albeit at a reduced pace compared to January’s record levels. Japan saw inflows again, for the fifth consecutive month. 

Funds in other regions added US$159mn, their third consecutive monthly inflow. Australia once again dominated demand – experiencing the strongest month since September 2024 – and South Africa also registered gains.