Gold’s recent rally is being fueled not only by rising prices but also by strong demand from exchange-traded fund (ETF) investors, according to Commerzbank commodity analyst Barbara Lambrecht.
Record Inflows in September
Data from the World Gold Council shows that gold ETFs saw record inflows in September, totaling over 145 tons. This marks the 11th highest monthly inflow since the launch of gold ETFs in 2004—over a 250-month period. While the high dollar value of these inflows is partly due to record gold prices, the volume itself reflects robust investor interest.
North America Leads the Charge
North American investors were the primary drivers of this surge, accounting for nearly 90 tons—over 60% of total inflows. This trend may be partly influenced by the weakening US dollar. In contrast, European inflows were significantly lower, totaling less than half the North American figure.
Holdings Near 2020 Peak in Tonnes, Surpass in USD Terms
As of the end of September, global gold ETF holdings stood just below 3,840 tons—only around 70 tons shy of the all-time high set in October 2020. In U.S. dollar terms, however, the value of these holdings is already nearly double the 2020 peak, a milestone that was first surpassed in July 2020.