March gold ETF outflows follow January record

Investors pulled money from gold-backed exchange-traded funds in March, with the largest withdrawals recorded in North American funds. The outflows followed a price surge to almost $5,600 per ounce in January and two subsequent sharp corrections. First-quarter ETF net flows were modest and lower than in the same quarter a year earlier.

Weekly flow data showed heavy inflows in January, a slowdown in February and clear outflows in March, concentrated in North American-listed funds. The pattern left overall quarterly ETF demand subdued compared with the prior year.

Physical demand for gold in 2025 exceeded 5,000 tons, a record year largely driven by purchases of bars and coins. Jewelry buying has declined as higher prices have pushed retail gold to about $4,700 per ounce, above last year’s average.

Central bank activity affected supply and demand during the quarter. In March, Turkey reduced its official gold reserves significantly as authorities sought to support the currency amid tensions related to the conflict with Iran. Other central bank purchases and sales were reported across the period.

Market participants pointed to geopolitical uncertainty and expectations of a more dovish Federal Reserve as factors influencing trading. Volatility during the quarter led to rapid shifts in investor behavior across ETFs and the physical market.