Gold-backed ETFs experienced a significant surge in investor demand during September, pushing global holdings to an unprecedented record of 4,256 tonnes. This growth occurred despite gold prices facing downward pressure from rising Treasury yields and a stronger U.S. dollar.
Global gold ETFs added 67.3 tonnes of gold last month, with inflows reaching $10 billion. The third quarter saw record inflows of $31 billion, driven primarily by North American and European funds. European ETFs alone set a quarterly record with $14 billion in inflows.
The renewed interest in gold is notable because prices fell during September as Treasury yields climbed. Investors continued to add exposure, suggesting that concerns over inflation, fiscal sustainability, bond-market volatility, and equity valuations are strengthening gold’s appeal as a portfolio diversifier.
The combination of record ETF holdings and continued central-bank buying indicates a broadening demand base for gold. This trend underscores gold’s role as a strategic asset, even in an environment where traditional market forces would typically create headwinds.