Gold funds/ETCs: 10 per cent inflows year-to-date

US President Trump’s announcements that he would impose tariffs of up to 40 per cent on European imports and 140 per cent on Chinese imports had a particularly strong impact on the stock market. This led to sharp declines in major stock indices: the S&P 500 dropped 15 per cent at the beginning of the year, while the Euro STOXX 50 fell by up to 7 per cent. But the looming trade war also had an impact on the gold price: gold in US dollars has risen by up to 30 per cent since the beginning of the year. In the eurozone, the increase was somewhat weaker due to the strong euro at up to 18 per cent. And despite record highs, demand for the precious metal has been going strong.

First quarter of 2025: second strongest ever

European physically backed gold ETCs recorded the second-highest net inflows worldwide at 54.8 tonnes, the highest since the beginning of 2022. British ETCs accounted for the largest share with 22.4 tonnes, followed by German ETCs with 15.4 tonnes – the latter despite significantly rising interest rates on 10-year Bunds in early March. Xetra-Gold was the fastest-growing ETC in Germany in the first quarter of 2025, up 7.8 tonnes, ranking second in Europe and fifth worldwide in terms of net inflows. This growth rate of 4.7 per cent further increased to 5.4 per cent by the end of April, at 9.0 tonnes.

North American gold funds: strongest growth since beginning of the year

US Gold ETFs have seen steady growth since the beginning of the year, with net inflows of 170 tonnes as of 21 April 2025. This is according to recent World Gold Council data, confirming that the US government’s erratic economic policy is causing rising alarm among US investors. In other regions, gold holdings managed in ETFs and ETCs also saw significant growth. Asian gold funds have recorded a 48 per cent increase since the beginning of the year and now stand at 320 tonnes. European physically backed gold ETCs stood at 1,348.3 tonnes at the end of April, only surpassed by gold funds in North America, which hold 1,821 tonnes. The value of global gold holdings in ETFs/ETCs stood at US$376 billion on 21 April 2025. At the end of January, i.e. before the announcement of the punitive tariffs, this figure was still US$294 billion.