Photo by Sven Hoppe/picture alliance via Getty Images
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Gold-linked exchange-traded funds (ETFs) recorded their fifth consecutive monthly inflow in October, data from the World Gold Council (WGC) showed.
“Global ETFs are just two months away from recording what looks to be their strongest year on record,” the organization said.
Gold funds accumulated another 55 tonnes of the expensive metal last month, though this was down from the monthly record of 146 tonnes punched in September.
This drove total holdings to 3,893 tonnes. This is within striking distance of November’s all-time high of 3,929 tonnes.
The WGC noted that “North America and Asia led global inflows in the month, while Europe was the only region with outflows.”
Gold ETF Flows since the beginning of 2024.
World Gold Council
With gold prices also having risen over the course of October, total ETF assets under management (AUM) increased to $502.8 billion. Last month’s inflows came in at $8.2 billion in monetary terms.
Gold prices reached new peaks just north of $4,381 per ounce on October 20. They fell sharply on robust profit-taking by traders following 2025’s breakneck gains, combined with easing trade tensions and a resurgent US dollar.
Bullion values have since stabilised and were sitting at $4,001 per ounce, up 52% since 1 January.
North America Remains Resolute
In North America, gold ETFs added 47 tonnes of material to push total holdings to 2,043 tonnes. Inflows had a value of $6.5 billion, driving regional AUMs to $263.5 billion.
This represented the fifth straight month of North American inflows.
The WGC said that “despite the [gold price] drop on 21 October, the largest listed gold ETFs in the US did not report outflows — contrary to what many expected.”
It said that North American funds enjoyed positive flows of $334 million (or 2.3 tonnes) that day, though outflows emerged in the following days and reached $117 million by the end of the week.
For the broader month, the Council said that “geopolitical risk, lower yields, and equity market frothiness may have been key drivers of gold demand as investors seek portfolio diversification.”
European Demand Drops
European funds, however, ended a streak of five-straight months of inflows in October.
In fact, the region recorded its second-largest monthly outflow on record. Negative flows totalled 37 tonnes with a value of $4.5 billion.
This pulled physical holdings and AUMs down to 1,399 tonnes and $180.4 billion respectively.
The WGC said that “while Switzerland posted another solid month of inflows, it wasn’t enough to offset significant weakness from the UK (its largest monthly outflow on record) and Germany (its second largest monthly outflow).”
It added that Europe recorded its largest weekly outflow in history – $3.6 billion – in the week from 20 October.
Asian Strength
Gold ETF demand from Asia remained rock solid in October, however. They bought $6.1 billion worth of the yellow metal last month, the second highest total ever after April’s $7.3 billion.
This amounted to 45 tonnes of metal. Total physical holdings rose to 379 tonnes, while AUMs ascended to $49.6 billion.
The WGC said that “the US-China tension flare-up in early October, alongside the gold price strength, sparked renewed gold interest among local investors.”
It added that Chinese investors dominated ETF buying last month, adding $4.5 billion worth of the safe-haven metal.