Global gold exchange-traded funds (ETFs) have continued their run of strong inflows, marking five consecutive months of gains in October as the gold price set multiple records.
According to the World Gold Council, physically backed gold ETFs have attracted US$8.2 billion in inflows during October, bringing total assets under management to US$503 billion, a six per cent increase from September.
Holdings rose one per cent to 3,893 tonnes, with North America and Asia leading demand while Europe recorded sharp outflows.
North American funds saw inflows of US$6.5 billion in October, extending their five-month winning streak. The region’s largest ETFs posted gains even after a five per cent price pullback late in the month.
Asia followed closely, adding US$6.1 billion — the second-strongest month on record — driven by China, which contributed US$4.5 billion.
Meanwhile, European funds experienced US$4.5 billion in outflows, led by the United Kingdom and Germany, which both posted record or near-record monthly withdrawals.
The World Gold Council said geopolitical risk, falling yields, and “equity market frothiness” were among the key drivers of demand as investors sought portfolio diversification.
Global gold trading volumes also hit record levels, averaging US$561 billion per day in October — a 45 per cent increase from September.
Exchange-traded activity rose 59 per cent month-on-month to US$300 billion per day, while over-the-counter trading climbed 28 per cent.
The gold price reached its 50th all-time high of the year on 20 October, peaking at US$4,294 per ounce before easing to end the month up five per cent at US$4,012 per ounce.
The World Gold Council attributed the gains to higher volatility and geopolitical uncertainty, while profit taking and a stronger US dollar capped further advances.
“A momentum flush-out and stronger dollar contributed to a see-saw for gold from its 50th all-time high,” the report said, adding that the long-term uptrend “remains supported by solid fundamentals”.
The council noted that gold’s year-to-date rise of 66 per cent has produced historically overbought conditions, but no long-term “sell” signal has emerged.
Technical support levels are seen around US$3,800 per ounce, with major resistance near US$4,500.
Fundamentally, gold demand continues to be reinforced by structural factors. “Global gold ETFs are supported by a strategic supplanting of bonds as an equity hedge at the margin,” the World Gold Council said.
It also pointed to geopolitical tensions, high real interest rates, and concentrated equity markets as “gold-friendly” conditions sustaining investor interest.
Central banks have added to this momentum, reporting their highest monthly net gold purchases of 2025.
September saw net buying of 39 tonnes, up 79 per cent from August. Brazil led with purchases of 15 tonnes, followed by Kazakhstan and Guatemala, while Uzbekistan was the only major seller.
Year-to-date, central banks have reported 200 tonnes of net gold buying, led by Poland (67 tonnes), Kazakhstan (40 tonnes), and Azerbaijan’s state oil fund (38 tonnes). The council noted that reported totals are slightly below the same period in 2024, when 215 tonnes were accumulated.
Together, the combination of strong investor inflows, heightened trading activity, and broad-based central bank accumulation has positioned 2025 as one of gold’s most dynamic years on record — with both institutional and sovereign players reinforcing its role as a hedge against uncertainty.
