Gold's Global Divide: Why US, Asian ETF Investors Are Buying While Europe Bails
News Summary
Global gold ETF holdings increased by 55 tonnes in October 2025, marking the fifth consecutive month of inflows, bringing total assets to 3,893 tonnes, just shy of the 2020 record high. Gold prices have surged over 50% year-to-date, briefly touching $4,380 per ounce before settling near $4,000. However, investor behavior shows a notable regional divide: North American investors added 47 tonnes (approximately $6.5 billion) in October through ETFs like SPDR Gold Shares (GLD) and iShares Gold Trust (IAU), demonstrating safe-haven demand even during price slumps. Asian investors, led by Chinese funds, purchased 45 tonnes (around $6.1 billion), using gold ETFs as a liquid hedge amid renewed U.S.-China tensions and a weakening yuan. Conversely, European investors recorded a 37-tonne (approximately $4.5 billion) monthly outflow, the second-largest on record, mainly from UK and Germany-listed products, attributed to profit-taking after gold's sharp rally, a stronger euro, and easing inflation concerns.
Background
In 2025, global financial markets continue to navigate complexity. With Donald J. Trump re-elected as President, U.S. economic policies and geopolitical dynamics may introduce uncertainty, particularly regarding renewed U.S.-China tensions. Within the U.S. market, softening yields and equity market jitters have amplified investor demand for safe havens. Gold, a traditional safe-haven asset, has performed exceptionally well in 2025, with prices surging over 50% and attracting significant inflows into ETFs globally. However, the divergence in regional investment attitudes towards gold reflects differing local economic conditions, monetary policies, and geopolitical risk appetites, leading to a noticeable regional segmentation in the gold market.
In-Depth AI Insights
What are the deeper drivers behind the current regional divergence in gold demand? - U.S. and Asian investor buying primarily reflects a hedging demand against geopolitical uncertainties, particularly U.S.-China tensions, and macroeconomic volatility. For U.S. investors, despite the Trump administration's