Global physically backed gold exchange-traded funds (ETFs) recorded US$6.6 billion in net inflows in April, marking a sharp reversal from March outflows as investors rotated back into gold amid renewed geopolitical tensions and shifting macroeconomic expectations, the World Gold Council says.
By Ryan Chigoche
The inflows lifted total assets under management to US$615 billion, a 1% month on month increase, while total holdings rose to 4,137 tonnes, the third-highest level on record and only slightly below the February 2026 peak of 4,176 tonnes.
The rebound was broad-based across regions, with Europe leading global demand at US$3.7 billion in inflows, enough to move its year-to-date position back into positive territory.
The United Kingdom drove the bulk of the inflows, followed by Switzerland and Germany, as investors responded to rising geopolitical risks, particularly Middle East tensions, alongside energy market uncertainty and expectations of a less aggressive monetary policy stance than previously priced in.
Asia extended its consistent accumulation trend to eight consecutive months, adding US$1.8 billion.
Hong Kong SAR posted a record US$732 million inflow, supported by new product listings, while Mainland China added US$498 million, underpinned by continued official sector buying and lower yields. India maintained steady demand with US$297 million in inflows, marking its 11th consecutive month of gains, while Japan contributed US$246 million.
Smaller but stable inflows from Australia and South Africa totalled US$106 million, reinforcing a pattern of steady accumulation across emerging and developed markets alike.
North America also returned to positive territory with US$1 billion in inflows, although momentum was uneven. Early-month inflows were driven by a rebound in gold prices and easing market stress following March’s volatility, but sentiment weakened later as a stronger US dollar and rising yields increased the opportunity cost of holding non yielding assets like gold.
Despite strong ETF demand, broader gold market activity moderated. Global trading volumes fell 24% month on month to US$398 billion per day, although they remained above the 2025 average, signalling that liquidity conditions were still robust.
Over-the-counter trading declined modestly but stayed elevated at US$244 billion per day, while exchange volumes dropped more sharply as activity slowed on COMEX and the Shanghai Futures Exchange. ETF trading volumes also eased but remained broadly stable.
Positioning data reflected a more cautious market stance. COMEX net longs declined 4% to 477 tonnes, as early-month gains were gradually unwound later in April. Both managed money and retail-linked positions followed a similar trajectory, with initial rebuilding giving way to renewed selling pressure as macro signals shifted.
From an analytical perspective, April’s data points to a market in transition rather than outright risk-on or risk-off positioning. The scale and geographic breadth of ETF inflows suggest that gold is regaining its role as a core portfolio hedge rather than a tactical trade.
Europe’s strong inflows indicate rising sensitivity to geopolitical and energy risks, while Asia’s sustained demand, particularly China’s record activity in Hong Kong, signals structural buying support rather than short-term speculation.
At the same time, the moderation in North American flows and softer positioning data suggest investors remain reactive to dollar strength and yield dynamics, limiting the speed of a full-scale bullish breakout.
Overall, the World Gold Council data shows a market where conviction is rebuilding unevenly, but directionally tilting back toward gold as a strategic hedge in an environment defined by persistent geopolitical uncertainty and fluctuating rate expectations.
