Global physically backed gold exchange-traded funds (ETFs) drew $6.6 billion in April, reversing March’s heavy outflows.
A record $12 billion drained from global gold ETFs in March, the steepest monthly outflow ever, as US-Iran tensions weighed on bullion. But as the chart below shows, investments rotated back into gold in April, with Europe and Asia bringing more capital into the market.
Gold Flows Reverse Course in April
The return of inflows came as gold prices stabilized. Bullion slipped 1.12% in April after plunging 13% in March, its sharpest monthly decline since 2008.
Year-to-date, global gold ETFs have recorded $19 billion in net inflows. Total assets under management rose 1% month over month to $615 billion, while collective holdings increased by 45 tonnes to 4,137 tonnes, the third-highest level on record.
All regions contributed to April’s recovery. European funds added $3.7 billion, Asian funds $1.8 billion, and North American funds $1 billion. Year-to-date, global gold ETFs have pulled in $19 billion.
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China’s Steady Bullion Bid
Meanwhile, China has remained a consistent gold buyer even through the war-driven volatility. The People’s Bank of China (PBoC) added over 8 tonnes of gold in April, extending its buying streak to 18 consecutive months.
The PBoC’s April purchase was its largest monthly addition since December 2024, taking total holdings to roughly 2,322 tonnes.
The April figure follows 5 tonnes added in March. Together, the two months represent China’s largest two-month accumulation since the first quarter of 2025, per The Kobeissi Letter.
“Year-to-date, China’s central bank has bought +15 tonnes of gold, on track for its biggest annual purchase since 2023. Since 2022, the country has officially increased its gold holdings by +372 tonnes, or +19%, making China one of the strongest gold buyers in the world. China is buying the dip in gold,” the post added.
Thus, the April rebound suggests gold’s role as a portfolio anchor has not faded. Whether the recovery holds depends on Middle East tensions and expectations for Federal Reserve rate hikes.
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