In January, global gold ETFs continued to attract inflows, pushing both total assets under management and total holdings to record highs. Investors from North America and Asia accounted for the largest purchases, while European funds also posted notable growth. In addition, trading volume in the gold market surged in January, reaching a record daily average of $623 billion.

Gold ETFs in all regions recorded inflows in January, with North America and Asia acting as the twin engines of demand: North America posted the second-highest monthly net inflow on record, while Asia set a new all-time high. Europe also saw significant inflows amid escalating geopolitical and trade tensions, and other regions extended their inflow streak for a second consecutive month.

Notably, despite the recent pullback in gold prices, on two key down days — January 30 and February 2 — gold ETFs in all regions except Europe recorded net buying, indicating that investors tended to buy the dip to increase gold exposure.

Inflows were supported by two major factors: first, the continued rise in gold prices; and second, the escalation of geopolitical tensions involving the United States and Iran, Greenland, and parts of Europe, which continued to boost investors’ interest in allocating to gold.

Although the Federal Reserve kept interest rates unchanged at its January meeting and emphasized that economic activity was expanding while taking a cautious stance on future rate decisions, controversy surrounding central bank independence has continued to intensify. Market focus is on whether Warsh, if ultimately appointed, would adopt a policy stance more aligned with President Trump’s preferences; and the U.S. Department of Justice subpoena of current Chair Powell has further added to policy uncertainty.

Asian markets contributed 51% of global gold ETF net inflows — a particularly striking achievement given that Asia’s total gold ETF holdings are only about one-fifth of North America’s. China once again led, contributing $6 billion, making it the second-largest source of inflows into global gold ETFs, behind only the United States. Strong gold prices, persistent geopolitical uncertainty, and robust institutional demand together supported continued buying of gold ETFs in the Chinese market.

Market Interpretation:

Uncertainty over the monetary policy outlook, together with investors’ expectations of eventual rate cuts, has formed a solid foundation for gold ETF demand. Meanwhile, the EU’s preparations for retaliatory tariffs have triggered broader market volatility and put pressure on export-oriented economies, further strengthening demand for defensive assets such as gold.