Heraeus: gold ETFs keep drawing big investments

Analysts at Heraeus report sustained strong growth in gold ETF investments, driven by rising gold prices as markets react to potential US trade tariffs against key trading partners.

China's Central Bank has significantly slowed its gold purchases, according to analysts. After adding over 1 million ounces to reserves between November 2022 and March 2024 (averaging 59,000 ounces monthly), the scale of purchasing is significantly reduced to 20,000 ounces per month as prices surged above $3,000 per ounce.

Gold ETFs have seen substantial inflows recently, with March 21 alone recording a 23-ton increase, the largest single-day addition since 2022. In the first quarter 2025 inflows reached approximately 152 tons, marking the strongest demand since September 2023.

While silver prices have surged 17.9% year-to-date, investor demand remains muted. ETF inflows increased just 2.2 million ounces since January 2025.