Gold Soars Beyond $3,200, ETFs Achieve Record Inflows In Q1

Gold prices soared past $3,200 an ounce for the first time on Friday morning, continuing a historic rally as investor demand surged with growing concerns over global economic stability, U.S. trade policies, and falling bond yields.

Spot gold climbed 1.8%, trading at $3,230 at 6 AM ET, extending the yellow metal's year-to-date gain to nearly 22%.

"Recession risks are mounting, bond yields are soaring, and the US dollar continues to weaken – all factors reinforcing gold's role as a crisis hedge and inflation shield," Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany, said per Reuters.

Analysts at UBS say the rally may not be over yet, predicting gold could reach between $3,400 and $3,500 per ounce "in the months ahead." Other institutions like Bank of America and Goldman Sachs recently revised their gold price targets upwards, citing heightened demand from central banks, falling real yields, and rising geopolitical stress.

Global gold ETFs saw substantial inflows in the first quarter of 2025, adding $21 billion, the second-highest quarterly inflow since the second quarter of 2020 during the COVID-19 pandemic.

Holdings increased by 226 tons, lifting total ETF gold reserves to 3,445 tons, the highest level since May 2023.

World Gold Council noted that North America dominated with $12.9 billion in net inflows—around 61% of the global total—driven by falling yields, a weaker U.S. dollar, and intensifying trade fears. Europe saw $4.6 billion in inflows, with the UK, Germany, and Switzerland leading the charge.

Meanwhile, Asia added $3.3 billion, with Japan and China accounting for the bulk as investors responded to explosive gold price momentum and domestic inflation concerns.

"This new buying in North America is the inverse of last year when there was an increase of ETF holdings in Asia and decreased holdings in the U.S., Canada, and Europe. This year we see increases across the board, (but) gold still dominates," Christopher Berlet, president of Mineral Fund, said for the Northern Miner.

Trading volumes have also remained robust. Gold averaged $266 billion daily in March, slightly below the quarterly average of $270 billion. COMEX led the way on exchange volume, buoyed by increased options activity and rising North American ETF flows. The long net positions of money managers in COMEX futures remained stable despite some profit-taking in early March.

The two largest gold ETFs globally—SPDR Gold Trust GLD and iShares Gold Trust IAU—continue to attract the most attention as investors seek cost-conscious gold exposure without owning physical bullion.

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