Gold hit a fresh record high on Thursday, with spot gold crossing $3,000 per ounce, up 1.8%. It has surged 13% in 2025, outperforming all major asset classes. On Friday, spot gold pared some of the gains and was trading at $2,982.73 as of 11:50 a.m. EST.

Needless to say, gold ETFs, which offer investors exposure to gold without owning the metal, have gained from this rally. Some top-performing gold ETFs include:

SPDR Gold Trust GLD: Tracks spot gold prices closely and has an expense ratio of 0.4%. It has risen 12% year-to-date, illustrating the strong demand for gold as a safe-haven asset.

iShares Gold Trust IAU: Follows the performance of the price of gold bullion. It carries an expense ratio of 0.25%. The ETF has climbed 12% YTD, closely mirroring gold's price action.

VanEck Vectors Gold Miners ETF GDX: Focuses on gold mining stocks and carries an expense ratio of 0.5%. The ETF has gained 23.5% YTD, benefiting from rising gold prices and improved miner profitability.

VanEck Junior Gold Miners ETF GDXJ: Targets smaller, high-growth mining firms. The ETF has surged 22.8% YTD as speculative interest in smaller miners has picked up.

Also Read: Billionaire Hedge Funder Adds Mining Stocks Before Gold Makes Record-Highs: ‘Gold Will Go Up,’ Paulson Says

Surging Gold ETF Inflows

Investor interest in gold ETFs is on the rise. The World Gold Council reported recently that global physically-backed gold ETFs saw $9.4 billion in inflows in February, the highest since March 2022. This marks three consecutive months of strong inflows, pushing total assets under management (AUM) to $306 billion. Holdings have also risen to 3,353 tonnes, the highest since July 2023.

North American flows rebounded after two months of outflows, while Asian demand remained strong and European inflows narrowed.

Why Is Gold Soaring?

Simply, economic uncertainty and geopolitical risks are driving gold's rally.

President Donald Trump's administration has reignited trade war fears by threatening tariffs. The Atlanta Federal Reserve's GDPNow model projects a 2.4% contraction for the U.S. economy in the first quarter of 2025, and JPMorgan raised the probability of a recession to 40%.

A key unknown factor is also influencing gold prices.

"A large and unknown player is driving gold's recent rally," said Ross Norman, CEO of Metals Daily Ltd., speculating that this could explain the unusual movements in gold prices.

Macquarie Group analysts are bullish, forecasting gold at $3,500 per ounce by the third quarter. "We view gold's price strength to date, and our expectation for it to continue, as primarily being driven by investors' and official institutions' greater willingness to pay for its lack of credit or counterparty risk," Macquarie wrote.

With trade tensions, recession fears and global uncertainty, demand for gold, and naturally, gold ETFs, is expected to stay strong. As price targets rise, investors seeking a hedge against volatility may find gold ETFs a compelling option.

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