Gold ETF Flows: February 2025

US leads multiyear record inflows

Published:

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.

 

Gold trading volumes rise

Trading activities across global gold markets increased in February, ending the month at roughly US$300bn/day on average. OTC trading, dominated by the LBMA, rose further, as dealers moved gold in response to the US tariff concerns. Gold futures trading volumes at COMEX were down while Shanghai Futures Exchange saw a sizable increase, given the strong local gold price performance. Additionally, gold ETF trading activities also rose, led by North America.

Total net longs of COMEX’s gold futures fell 13% m/m to 832t by the end of February. Net long positions of money managers dropped 16%, ending the month at 605t. Nonetheless, it is still 9% above the 2024 average of 556t. Profit taking activities as gold soared might have driven the decline in money manager net longs.

 

Gold ETF flows

Data as of

Demand captures changes in global/regional gold holdings; fund flows capture the net amount of money (in USD) that comes in or out of gold ETFs globally/regionally. See methodology note.

 **Note: As of 1 July 2021, this dataset now includes several enhancements, which we believe improve the accuracy and usability of the data.

  • Fund aggregation: funds that include more than one asset or sub-asset class are now grouped and displayed as a single product. This allows tracking of total assets of individual funds over time more easily. This change applies mainly to various European funds (and a few other regions) which, for example, offer different listings of the same fund structure and that were previously treated in our universe, for simplicity, as distinct products.
  • Holdings accuracy: the estimation of gold holdings by converting net asset values (NAVs) of the different funds to tonnage now uses relevant regional gold price benchmarks for funds in China and India, which we believe is more precise. Previously, for ease of calculation, we used the LBMA Gold Price PM for all funds. Thus, differences between those benchmarks and the LBMA Gold Price, whether due to timing or due to local premiums, could result in a less accurate estimation of the gold holdings. This was especially noticeable for funds listed in China and India during days when the gold price experienced significant moves or there were regional holidays. 
  • Previously, changes in tonnes were calculated by converting a fund’s AUM (in USD) into gold holdings (in tonnes) and computing the difference over periods. However, currency movements and large daily and weekly gold price movements could distort the difference between tonnage change and US-dollar fund flows during short time horizons. We therefore adjusted tonnage change as a function of fund flows versus AUM and replaced the tonnage change field with fund flows (tonnes).
  • Now, for most funds, we estimate US-dollar fund flows, as described in section 2.3.2 below, and then convert those flows to fund flows (tonnes).
    Fund flows (tonnes) and US-dollar fund flows will now represent a more aligned explanation of investment demand for gold ETFs, while the true holdings of a fund, in US dollars and tonnage, will remain a close estimate, impacted by the currency and price volatility described above.
  • Based on our initial analysis, the changes are not likely to have a material long-term effect on historical information, particularly on a global or regional aggregate basis, but will adjust short-term fluctuations that can sometimes occur due to input data and timing variations.
  • As of 1st September the fund flows data includes an additional tab showing tonnage flows (Delta tonnes) for monthly and daily periods.

These changes may lead to some – generally minor – revisions of historical data.

Footnotes

  1. We define gold ETFs as regulated securities that hold gold in physical form. These include open-ended funds traded on regulated exchanges and other regulated products such as closed-end funds and mutual funds. A complete list is included in the gold ETF section of Goldhub.com.

  2. We track gold ETF assets in two ways: the quantity of gold they hold, generally measured in tonnes, and the equivalent value of those holdings in US dollars (AUM). We also monitor how these fund assets change through time by looking at two key metrics: demand and fund flows. For more detail, see our ETF methodology note.

  3. 10-year Treasury yield falls to lowest since December on growth worries | 25 February 2025

  4. This is based on the LBMA Gold Price PM

  5. UK inflation rise is a blow to Bank of England interest rate cut path | 19 February 2025

  6. ECB's Nagel sees more rate cuts as inflation outlook encouraging |26 February 2025

  7. Baidu is the main search engine in China, the Baidu Search Index reflects the frequency of searches by internet browsers for certain words, for more details: 百度指数. In 2013, China saw its peak investment demand for gold.