Eastern appetite for gold ETFs offsets ‘heavy’ Western outflows

Yasmine Raso

Senior Journalist

10 April 2026

The latest analysis from the World Gold Council has determined that physically-backed gold exchange traded funds (ETFs) suffered their worst monthly outflows on record in March after a highly volatile start to the year.

Despite being dragged down to US$12 billion by “heavy Western selling”, gold ETFs still managed to mark a seventh consecutive quarter of net inflows buoyed by sustained Asian appetite, with the region posting its largest quarterly inflow on record at US$14 billion.

North America’s US$13 billion in outflows for the month alone ended its nine-month streak of inflows, with the analysis noting that previous drivers of inflows “reversed course” in March and turned into key contributors to the region’s weakness, including the ramifications of Operation Epic Fury weighing on the majority of asset classes – except oil.

According to the council’s commentary, the US has seen two other periods – the Global Financial Crisis (GFC) and the COVID-19 pandemic – with nine consecutive months of inflows followed by a “sharp reversal”. However, flows managed to bounce back quickly after both periods with the region adding US$8 billion in the year till March 2022 and US$16 billion in net inflows after the GFC.

Across the pond, European funds posted $154 million in outflows for the month of March, with Taylor Burnette, the World Gold Council’s Research Lead, Americas, noted Germany, France and Italy led the selling front.

“Flows closely tracked gold price movements: sizable outflows dominated the second half of March as prices fell, while modest inflows re‑emerged toward month‑end alongside a price rebound,” he said.

“At the same time, inflation concerns linked to geopolitical tensions in the Middle East led the European Central Bank to hold rates steady in March while signalling a willingness to hike should inflation accelerate.

“Rising inflationary pressures and a more hawkish policy stance pushed regional yields higher, increasing local investors’ opportunity costs of holding gold. Meanwhile, the euro’s depreciation against the dollar exacerbated losses in FX‑hedged products, particularly in Switzerland, further weighing on regional flows.

“Asian gold ETFs added US$2bn in March, marking a seventh consecutive month of inflows and lifting Q1 inflows to US$14bn, the strongest quarter on record.

“China led monthly additions, driven by heightened safe‑haven demand amid geopolitical risks, falling local equity markets, and a weaker currency. China also accounted for the bulk of regional inflows in Q1 (US$8bn).

“Elsewhere, dip‑buying activity supported inflows across the region. Indian investors continued to increase gold ETF allocations as well, adding US$177mn in March and bringing Q1 inflows to US$3bn.”

Burnette also singled out the Australian market as a key driver of outflows remaining “modest” in other regions, accounting for only US$27 million in outflows and US$285 million in Q1 inflows. Australian and South African holdings were credited with remaining largely resilient in the face of “heightened gold price volatility”.