Gold Tops $3K: GLD, IAU Surge as Investors Seek Safe Haven
Gold topped the $3,000 per ounce level for the first time ever, propelling gold ETFs like GLD and IAU even higher.
The price of gold hit a historic milestone Friday, surpassing $3,000 per ounce for the first time ever. The surge propelled gold exchange-traded funds even higher, adding to their already strong yearly gains.
The two largest gold ETFs by assets under management, the $87 billion SPDR Gold Trust (GLD) and the $40 billion iShares Gold Trust (IAU), are now up nearly 14% year to date, building on their impressive 27% gains in 2024.
Flight to Safety Amid Market Volatility
Investors have flocked to gold as economic uncertainty intensifies and the stock market experiences a sharp pullback. The S&P 500 officially entered correction territory on Thursday, sliding 10% from its highs in just 16 trading sessions—the seventh-fastest correction since 1929, according to Bloomberg.
The precious metal’s rise has been fueled by concerns over President Donald Trump’s trade war with multiple trading partners, which has exacerbated fears of an economic slowdown. In contrast to its double-digit percentage surge, traditional safe-haven assets like Treasury bonds have delivered more muted gains.
The iShares 7-10 Year Treasury Bond ETF (IEF) and the iShares 20+ Year Treasury Bond ETF (TLT) have gained 2.9% and 3.9%, respectively, this year—recovering from declines of 0.6% and 8% in 2024.
Meanwhile, Bitcoin—often dubbed "digital gold"—has failed to live up to its reputation as a safe-haven asset. The iShares Bitcoin Trust (IBIT) has dropped 9% year to date, following a doubling in price last year.
Bitcoin’s recent decline suggests that, during market turmoil, it behaves more like a speculative asset than a reliable hedge.
5 Largest Gold ETFs by AUM
ETF Investors Drive Gold Rally
Unlike last year’s rally, which was primarily driven by futures markets and central bank purchases, ETF investors appear to be a significant driver of the metal’s ascent in 2025.
Since the start of the year, nearly $8 billion has flowed into U.S.-listed gold ETFs, with GLD and IAU alone attracting $3.3 billion and $2.6 billion, respectively. The cheapest (by expense ratio) of the group—the SPDR Gold MiniShares Trust (GLDM) and the iShares Gold Trust Micro (IAUM)—have also seen strong demand, pulling in $1.3 billion and $311 million, respectively.
With gold now trading above $3,000 and economic uncertainty showing no signs of abating, investor interest in gold ETFs is likely to remain strong in the months ahead.
