Positive ETF Gold flows pushed holdings to a new record in September

Despite tremendous price pressure on gold from rising yields, more metal flowed into gold-backed ETFs last month, driving fund holdings to a new record. 

According to the latest data compiled by the World Gold Council, ETFs globally increased their gold holdings by 67.3 tonnes to a record 4,256 tonnes.

ETF gold inflows totaled 211 tonnes valued at a record $31 billion in the third quarter.

However, with falling gold prices, total assets under management (AUM) by gold-backed funds dipped 7 percent in September to $574 billion. Even so, gold ETF AUM grew 9 percent in Q3. 

North American funds led the way in September, reporting a 27.7-tonne-increase in gold reserves valued at $4 billion.

AUM by North American gold funds rose by $12 billion in Q3. 

As the World Gold Council noted, “This first quarterly inflow of 2026 marked a sharp reversal from the weakness seen earlier in the year, bringing y-t-d flows firmly into positive territory at $4.1billion.”

Notably, North American ETFs increased their gold holdings in Q3 given what the World Gold Council described as a “challenging domestic backdrop.”

“The Federal Reserve raised interest rates by 25 basis points during the month and signaled that further tightening could follow, contributing to upward pressure on Treasury yields and the dollar. These developments increased the opportunity cost of holding gold and weighed on its price. Nevertheless, persistent inflation and elevated energy prices, concerns over equity valuations – particularly in AI-related sectors – and increased bond-market volatility may have reinforced gold’s appeal as a portfolio diversifier. Continued inflows also suggest that some investors viewed the price pullback as an opportunity to build or maintain strategic positions rather than reduce exposure.”

European ETFs also had a strong September, with gold holdings rising by 21.7 tonnes valued at $3.6 billion. During Q3, European ETF gold buying set a quarterly record of $14 billion.

UK-based funds drove European buying, adding $2.2 billion worth of gold in September. UK-based gold ETFs increased their gold reserves for 12 of the 13 weeks in Q3, adding $7.5 billion in gold, a quarterly record. The World Gold Council called it “the most consistent run since 2022.”

“Recent inflows have coincided with a rising gilt term premium, potentially reflecting broader investor concerns over inflation uncertainty, fiscal sustainability and sovereign bond-market risks; factors that may have reinforced gold’s appeal as a portfolio diversifier.” 

Asian funds added 16.2 tonnes of gold in September, valued at $2.3 billion. It was the third straight month of inflows after a brief pause last summer.

Chinese funds reported the largest positive gold flows, while activity also increased in India, Japan, South Korea, and Singapore. The World Gold Council said this highlights "the breadth of regional buying."

Chinese funds continued to attract investors despite a weaker gold price “amid renewed weakness in domestic equities and declining government bond yields, both of which supported gold’s relative appeal.”

Weakness in the Indian stock market also supported gold buying.

ETFs in other regions, including Africa and Australia, reported a 1.7-tonne increase in gold holdings valued at $104 million.

Australian funds accounted for virtually all monthly buying, adding $106 million in gold. Australian investment offset modest outflows from South Africa.

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 was generally stable in September, with average daily trading volumes dipping modestly by 2 percent to $423 billion per day across all major market segments.

Over-the-counter (OTC) trading volumes rose 1 percent on the month to $229 billion per day. LBMA activity supported OTC trading, with a 1 percent month-on-month increase to $200 billion per day. This is well above the 2025 average.

COMEX trading edged 1 percent lower last month, while net open interest in COMEX gold options retreated to levels last seen in early August. However, it remained significantly higher than when gold reached its record high in January.

Total COMEX longs fell by 11 percent to 654 tonnes.

Managed money net longs fell by 84 tonnes to 387 tonnes.