Global physically-backed gold ETFs continued their strong run in April, drawing an additional $11 billion and extending their inflow streak to a fifth consecutive month. Assets under management climbed to a record $379 billion as total holdings rose by 115 tonnes to reach 3,561 tonnes. The growth was driven primarily by Asian markets, which accounted for roughly 65% of global inflows and set a regional record with $7.3 billion of new investment, led predominantly by increased demand from China. North American investors contributed another $4.5 billion to the sector, while European funds experienced a modest net outflow of $807 million.
Trading activity across global gold markets surged in tandem with ETF flows. Average daily trading volume expanded to $441 billion, a 48% increase from the previous month, as participants across spot, futures and ETF markets ramped up activity. This broad-based uptick reflects heightened investor interest in gold as both a tactical allocation and a longer-term store of value amid ongoing market uncertainty.
The concentration of inflows in Asia underscores a shifting geographic balance in demand. Chinese investors, in particular, boosted allocations to physically-backed ETFs, responding to local market conditions and increased appetite for gold exposure. North American inflows remained significant, supporting global assets under management, while Europe’s modest outflows suggest regional preferences and portfolio rotations played a role in short-term fund flows.
Overall, the latest data reinforce the resilience of physically-backed gold ETFs as popular vehicles for accessing bullion. The record high in assets under management and a substantial rise in holdings demonstrate investor willingness to allocate to gold through regulated, transparent ETF structures. With elevated trading volumes across market segments, liquidity conditions for gold instruments have improved, facilitating easier entry and exit for both institutional and retail investors.
Looking ahead, continued monitoring of regional demand patterns and broader macroeconomic indicators will be important to assess whether this momentum can be sustained. However, April’s performance highlights the role of physically-backed gold ETFs as a key channel for capital flows into the precious metals market, reflecting diverse investor motives from portfolio diversification to hedging against uncertainty.