2025 was a record year for gold funds and gold-backed ETCs in two respects: net inflows totalled 25 percent, while the return of gold holdings under management stood at a full 100 percent. In the first quarter of 2026, the situation changed due to the US-Israeli military conflict with Iran. Following global net inflows of 3 percent in January and 0.6 percent in February, outflows dominated in March at -2 percent. Besides US-based gold funds, European gold ETCs recorded outflows to an extent which halved global inflows in the first quarter of 2026, according to the World Gold Council.
European gold ETCs dominate in 2026 with inflows significantly outpacing US and Asia
After European gold-backed ETCs last spearheaded global inflows in January 2025, gold holdings under management in Europe increased by just under 27 tons in April 2026. By comparison, US gold funds saw inflows of 6.1 tons over the same period. Even Asia, where both central banks and investors have been among the strongest and most consistent buyers of gold for many months, recorded significantly fewer inflows than Europe in April 2026, at 11.3 tons.
Strongest growth for ETCs in UK, Switzerland and Germany
In the UK, gold-backed ETCs surged by 15.3 tons in April. Over the same period, the US recorded inflows of only 4.7 tons, while Switzerland saw net inflows of 5.7 tons, and Germany of 3.6 tons. The positive trend in Europe is likely due, on the one hand, to the significant recovery of the gold price in April, which rose from a low of €123 in March to €132 in April and stood at just under €130 in early May. On the other hand, there is growing confidence that the blockade of the Strait of Hormuz could be lifted in the foreseeable future, before rising oil prices begin to affect all aspects of daily life.