##  [# Gold ETFs Draw Record Inflows as Prices Soar to New Highs](/sections/features/gold-etfs-draw-record-inflows-prices-soar-new-highs) 

 

# Gold ETFs Draw Record Inflows as Prices Soar to New Highs

 

 

\- Gold-backed ETFs attracted 170 tonnes (187.4 tons) during Q2, marking the strongest first half since 2020.  
\- Total global gold demand jumped 45% to a record $132 billion despite the volume decline.  
\- Investment flows were driven by trade policy uncertainty and geopolitical tensions.



 

 

 

 

 [![DJ](/sites/default/files/styles/author_image_icon/public/2024-07/5.png?itok=LA-jevm_)](/authors/dj-shaw) 

[By DJ Shaw ](/authors/dj-shaw)

 Aug 01, 2025

 Edited by: David Tony

 

 

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Gold-backed exchange-traded funds are experiencing their strongest performance in years, with global inflows reaching 170 tonnes (187.4 U.S. tons) in the second quarter as investors pile into the precious metal amid record-high prices and mounting geopolitical uncertainty.

The surge in [gold ETF](/topics/gold) demand helped drive total gold investment up 78% year over year in the second quarter, according to the World Gold Council's latest Gold Demand Trends [report](https://www.gold.org/goldhub/research/gold-demand-trends/gold-demand-trends-q2-2025/outlook). Combined with first-quarter inflows of 227 tonnes (250.2 U.S. tons), gold ETFs posted their strongest first half since the pandemic-driven surge of 2020, when 734 tonnes (809.1 U.S. tons) flowed into the funds.

The surge highlights a growing divide in gold markets, according to the report. While jewelry consumers retreat due to high prices, institutional investors are doubling down on gold ETFs as protection against trade wars, currency swings and geopolitical risks.

The ETF flows came despite gold prices averaging a record $3,280 per ounce in the second quarter, up 40% year over year. North American-listed funds led the charge with $8 billion in inflows, while Asian funds attracted nearly matching demand despite having one-fifth the assets under management.

## Gold ETF Investment Appetite Defies Price Pressure

What makes the ETF performance stand out is how it contrasts with other gold sectors. Jewelry consumption, traditionally gold's largest demand driver, fell to pandemic-era lows as record prices pushed affordability beyond reach.

Yet ETF investors appeared unfazed by the price surge. The funds attracted positive flows across all regions, with European-listed products adding 24 tonnes (26.5 U.S. tons) and Asian funds contributing 70 tonnes (77.2 U.S. tons). The broad-based demand suggests institutional conviction rather than speculative momentum, according to the report.

"Uncertain global trade policy, geopolitical turbulence and the rising gold price all fueled inflows," the World Gold Council noted. The combination of Federal Reserve policy uncertainty, dollar weakness and heightened tensions in the Middle East created what analysts describe as an ideal environment for safe-haven assets.

Looking ahead, the World Gold Council expects ETF demand to continue, though potentially at a slower pace in the second half. Near-term headwinds include possible dollar strength and the risk of profit-taking if prices consolidate.

 
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  A graduate of The University of Texas, Arlington with a BA in Communications, DJ has covered retirement plans, mortgage news, and financial advisor…   [View Bio](/authors/dj-shaw)

 



 

 


 Related Topics  [Gold](http://www.etf.com/topics/gold) 

 [Precious Metals](http://www.etf.com/topics/precious-metals)