Global Gold ETFs draw $6.6B in April; Europe leads

Global physically backed gold exchange-traded funds attracted $6.6 billion in April, reversing heavy outflows in March. European funds accounted for the largest share, taking in $3.7 billion, followed by $1.8 billion into Asia-directed funds and about $1 billion into North American funds.

The inflows raised total assets under management in these ETFs to roughly $615 billion, a 1% increase from March. Collective ETF holdings climbed by 45 tonnes to reach 4,137 tonnes, the third-highest level on record.

Gold prices fell 1.12% in April after plunging about 13% in March, which was the steepest monthly decline since 2008. March also saw record ETF outflows of roughly $12 billion. The April inflows brought year-to-date net inflows for global gold ETFs to approximately $19 billion.

China’s central bank purchased more than 8 tonnes of gold in April, its largest monthly addition since December 2024 and an extension of its recent buying streak. Those purchases brought the central bank’s official holdings to about 2,322 tonnes. Since 2022, China’s reported reserves have increased by roughly 372 tonnes, or about 19%, and the central bank has acquired about 15 tonnes so far this year.

Market participants point to geopolitical tensions in the Middle East and expectations about future U.S. interest-rate moves as factors affecting near-term demand for gold and ETF flows. Central bank purchases and investor allocations to bullion through ETFs contributed to April’s accumulation of holdings.

Gold-backed ETFs remain a common way for investors to gain exposure to bullion. The April reversal followed two volatile months for the market: a record monthly outflow in March and a partial recovery in April, which together reshaped ETF flows and holdings for the year.