Middle East tensions fuel gold ETF inflows

Mike Taylor

Managing Editor and Publisher

2 April 2026

The ongoing conflict in the middle east is continuing to shape investor sentiment, with Exchange Traded Fund (ETF) provider, Global X, pointing to strong flows into its gold ETFs over the past week.

It said that despite some selling over the past month, it had seen total inflows of $224 million year to date across its gold suite of ETFs, compared to just $72 million in inflows into the same funds a year earlier.

Commenting on the flows, Global X investment strategist, Justin Lin said he believed investors are correctly recognising that the constructive outlook for gold remains intact despite the recent liquidity-driven sell-off.

“Current levels appear attractive from both a tactical and long-term perspective, with outcomes skewed positively across scenarios. A near-term de-escalation in the Iran conflict and reopening of the Strait of Hormuz would likely ease inflation expectations and bring rate cuts back into focus,” he said.

“Conversely, a prolonged or escalating conflict risks pushing oil prices to levels that begin to erode demand, weighing on growth and creating a stagflationary backdrop that has historically been supportive of gold,” Lin said.

“Certainly, more tactical investors who felt they had missed the gold trade could now be stepping in now that prices appear more attractive.”

Lin said, however, that the current behaviour appears more consistent with dip-buying, which implies existing investors with already high conviction are accumulating larger positions rather than a new wave of speculative investors entering the market.

“In the event of sustained conflict, we believe there is a strong likelihood that market sentiment reaches an inflection point on inflation and shifts toward growth concerns instead, which would be net positive for gold and reinforce its role as a hedge against market downturns,” he said.

Lin said that while Global X remains constructive on gold, it also sees a strong case for broad-based commodity exposure as a complementary hedge