Holdings in gold-backed ETFs (exchange-traded fund) reached all-time highs this month with net inflows up by 5 per cent. (US$8.1bn). March capped a record breaking quarter, as gold ETF holdings and assets added US$23bn in net inflows, the largest quarterly gain in history. European funds led with AUM growth of US$4.4bn (5.8 per cent AUM). North American funds added 4 per cent to assets (US$3.2bn). Asian funds, primarily in China, also finished the month with strong inflows, adding US$309mn (6.4 per cent AUM), while funds in other regions grew 9.4 per cent (US$249mn). Gold global trading volumes averaged US $236bn a day in March, an increase of 61 per cent y-o-y.

Globally, gold ETFs added 151t – net inflows of US$8.1bn (+5 per cent) – in March, boosting holdings to new all-time highs of 3,185t.1 Trading volumes and AUM reached record highs as gold volatility increased to levels last seen during the financial crisis, yet gold price performance was mostly flat in US dollars for the month. Gold prices denominated in many other currencies, however, continued to reach all-time highs although the price in US dollars remained 15 per cent below its 2011 high.

Uncertainty around the short- and long-term economic impacts of COVID-19 continues to drive sharp volatility across many assets, leaving global equities in bear market territory while encouraging inflows into safe-havens like treasuries and gold.