In March, global physical gold ETFs experienced the largest monthly net outflow in history, with large-scale selling in the North American market nearly halving the cumulative gains for the first quarter. Meanwhile, sustained buying in the Asian market partially offset the selling pressure from the West.
According to data released by the World Gold Council on April 8, global gold ETF net outflows reached $12 billion in March, marking the largest monthly outflow on record. This caused the net inflow for the first quarter to shrink by half from previous expectations.
However, this still represented the seventh consecutive quarter of net inflows. In the first quarter, global gold ETF holdings increased by a net 62 tons, with assets under management closing at $606 billion, up 9% from the full-year 2025 level. The overall trend of net inflows did not reverse due to the significant volatility in March.
Notably, the Asian market moved against the trend, with a first-quarter net inflow of $14 billion, setting a record for the strongest quarterly inflow ever. China contributed approximately $8 billion. The sustained buying in Asia effectively counteracted the selling pressure from Western markets, allowing the global inflow trend to be maintained.
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<h2>North America Records Historic Outflow, Ending Nine-Month Inflow Streak</h2>
North America was the primary source of global gold ETF outflows in March. The region saw a net outflow of $13 billion for the month, not only breaking historical records but also ending a previous nine-month streak of continuous net inflows. It was the only region to record a net outflow in the first quarter.
The World Gold Council indicated that a confluence of factors triggered this wave of selling. Widespread risk aversion stemming from the U.S.-Iran conflict impacted most asset classes, leading U.S. investors to seek liquidity by selling assets that had previously seen significant gains, including gold. Concurrently, Commodity Trading Advisors (CTAs) held substantial long positions in mid-March, amplifying selling momentum as gold prices declined and forcing passive liquidation for some investors with weaker positions. Additionally, a strengthening dollar, rising interest rates, and a significant revision of market expectations for Federal Reserve rate cuts—shifting from expectations of cuts in 2026 to predictions that rates would remain unchanged until September 2027—all increased the opportunity cost of holding gold.
Historically, North America has only experienced continuous net inflows exceeding nine months twice before, during the Global Financial Crisis and the COVID-19 pandemic. Both instances ended with sharp reversals. It is noteworthy that the fourth through sixth largest monthly outflows on record all occurred during the COVID-19 pandemic between November 2020 and March 2021. However, the region saw a rapid rebound in net inflows to $8 billion within the following 12 months. In a similar cycle following the financial crisis, net inflows reached $16 billion.
<h2>Europe Records Minor Outflow, Rising Opportunity Costs Suppress Demand</h2>
Europe recorded a net outflow of $154 million in March, compressing its first-quarter net inflow to a mere $27 million. Germany, Italy, and France were the main contributors to the outflows for the month.
In terms of flow characteristics, European capital movements closely mirrored gold price trends: outflows were significant during the latter half of March when gold prices fell, with a slight inflow returning at the end of the month as prices rebounded.
On the fundamentals side, the European Central Bank remained on hold in March, signaling potential rate hikes if inflation accelerated. Inflationary concerns driven by geopolitical tensions pushed regional yields higher, further increasing the opportunity cost for local investors holding gold. Furthermore, the depreciation of the euro against the U.S. dollar exacerbated losses in foreign exchange-hedged products, with the Swiss market being particularly affected, adding further drag on overall regional flows.
<h2>Asia Sees Seven Consecutive Months of Inflows, China and India Lead the Charge</h2>
Asian gold ETFs recorded another net inflow of $2 billion in March, marking the seventh consecutive month of positive inflows and driving the cumulative first-quarter net inflow to $14 billion, a record high for any quarter.
China was the primary driver of inflows in Asia. Rising geopolitical risks fueled safe-haven demand, leading to a net inflow of approximately $8 billion in China during the first quarter, accounting for the vast majority of the Asian region's total.
India also continued its trend of increasing holdings. Indian investors made net purchases of $177 million in gold ETFs in March, with cumulative net inflows for the first quarter reaching $3 billion, indicating sustained growth in gold allocation demand from this market.
Other regions (primarily including Australia and South Africa) saw a minor net outflow of $27 million in March, narrowing the first-quarter net inflow to $285 million. However, overall holdings remained relatively stable against the backdrop of increased gold price volatility.

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Global physical gold ETFs saw a net outflow of $12 billion in March, marking the largest monthly outflow on record. North America alone offloaded $13 billion, halting a nine-month streak of inflows. However, Asia bought aggressively, achieving a record quarterly net inflow of $14 billion, with China contributing $8 billion. Amidst this strong divergence between East and West, the overall global net inflow trend persisted for a seventh consecutive quarter

- In March, global physical gold ETFs experienced a record net outflow of $12 billion, primarily driven by significant sell-offs in North America.  
- Despite this, the Asian market continued to invest, leading to a cumulative net inflow of $14 billion in the first quarter, with China contributing approximately $8 billion.  
- The outflows in North America halted a nine-month streak of inflows, influenced by rising interest rates, strong dollar, and geopolitical tensions, which increased the opportunity cost of holding gold.

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East Buys, West Sells! US Leads March Declines Dragging Global Gold ETFs, Asia Sets Quarterly Inflow Record