Western investors return to gold market after three-year lull

After a three-year hiatus, Western investors are once again actively entering the yellow metal market. According to the World Gold Council, by mid-April, traders from North America and Europe had purchased about 240 tons of bullion through exchange-traded funds (ETFs) backed by physical metal. That amount is more than half of the 441 tons they sold over the past three years.

Aakash Doshi, global head of gold strategy at State Street Global Advisors, noted that investors’ renewed buying of the precious metal through ETFs is dramatically changing the market. This kind of demand is supporting prices even more than central bank or Chinese purchases.

On Tuesday, the price of gold topped $3,500 an ounce for the first time in history amid global economic uncertainty.

The world’s largest gold ETF, SPDR Gold Shares, recorded net inflows of $8.65 billion. Most of these funds came from institutional investors using the precious metal as a hedge against market, currency, and interest rate risks.

Since the beginning of 2025, gold has risen in price by almost 30%, already exceeding the total growth seen in 2024, Bloomberg reports.