ETF Gold flows slow in October but remain positive

ETFs around the world continued adding gold to their holdings in October. However, the pace of gold accumulation slowed, with metal flowing out of North American funds.

ETFs globally added a net 19 tonnes of gold valued at $2.7 billion to their holdings in October. That drove cumulative ETF gold stocks to a record 4,275 tonnes. However, assets under management (AUM) by gold-backed funds dipped 6 percent to $542 billion, driven lower by last month's big drop in the gold price.

Through the first 10 months of 2026, gold ETFs added $41 billion, and their metal holdings rose by 246 tonnes. In value terms, it was the third-strongest start to a year on record.

European and Asian funds led global flows, accounting for 44 and 45 percent of total net inflows, respectively.

European funds powered global gold ETF inflows higher last month, adding 13.1 tonnes of metal, valued at $1.8 billion.

Gold has flowed into European funds for 18 straight weeks. As the World Gold Council noted, the European gold rush has persisted despite weak price performance, surging yields across the region, and shifting expectations for local central bank policy.

“This suggests that demand for gold ETFs may be increasingly strategic, reflecting persistent political and fiscal uncertainty across the region.”

United Kingdom-based funds led the way in October. In fact, the UK led all countries in ETF gold flows through the first 10 months of 2026.

Germany, France, and Switzerland also reported strong demand for gold ETFs.

World Gold Council analysts say energy shocks, political unrest in France, and a weakening German economy boosted gold last month.

“Against this backdrop, investors have increasingly turned to gold ETFs for diversification, particularly as traditional safe-haven bond markets face their own challenges.”

Meanwhile, North American funds reported gold outflows totaling -4.5 tonnes valued at $512 million.

Selling was concentrated in the U.S., as gold continued to flow into Canada-based funds.

Gold came under significant selling pressure at the end of the month. World Gold Council analysts said some North American investors may have tapped into the strong gold positions as the stock market tanked.

“U.S. technology equities came under selling pressure during October amid growing concerns around AI-related capital spend. The resulting market stress may have contributed to the region’s gold ETF outflows as some investors turned to their gold holdings as a ready source of liquidity. This illustrates one of gold’s key attributes: deep liquidity can help investors meet cash needs during market turbulence.”

Gold flowed into Asian gold ETFs for the fourth straight month in October. Asian funds added 9.8 tonnes of gold valued at $1.3 billion.

China drove the region’s ETF inflows as the country’s stock markets struggled. WGC analysts say Chinese investors’ allocation to gold ETFs “remains strategically linked to the equity market rout and falling government bond yields, which reduce the opportunity cost of holding gold despite the gold price weakness.”

Japanese funds also attracted inflows last month for similar reasons.

Indian ETFs continued to experience growth despite the government’s temporary suspension of fresh subscriptions to gold funds in mid-October. The government is trying to limit gold imports to lower the trade deficit and support the rupee.

Funds listed in other regions, including Australia and Africa, reported modest gold inflows of 0.6 tonnes valued at $62 million.

ETFs are a convenient way for investors to play the gold market, but owning ETF shares is not the same as holding physical gold.

ETFs are relatively liquid. You can buy or sell an ETF with a couple of mouse clicks. You don’t have to worry about transporting or storing metal. In a nutshell, they let investors play the gold market without buying full ounces of metal at the spot price.

Since you're just buying a number on a screen, you can easily trade your ETF shares for another stock or cash whenever you want, even multiple times on the same day. Many speculative investors take advantage of this liquidity.

But while a gold ETF is a convenient way to play gold's price, you don’t possess any gold. You have paper. And you don’t know for sure that the fund has all the gold, especially when it sees inflows. In such a scenario, there have been difficulties or delays in obtaining physical metal.

Trading volumes

Gold market activity slowed down in October, with average daily trading volumes dipping 13 percent to $365 billion per day across all major market segments.

Over-the-counter (OTC) trading fell modestly by 2 percent in October to $219 billion per day. LBMA activity also charted a 2 percent month-on-month decline to $196 billion per day.

COMEX trading fell sharply by 22 percent last month, while net open interest in COMEX gold options rose by 6 percent.

Total COMEX net longs fell by 94 tonnes to 560 tonnes. It was the lowest level since the end of July.

Managed money net longs fell by 53 tonnes.