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Gold ETFs post strong inflows in March and the first quarter – Commerzbank

The March data on gold ETFs published by the World Gold Council this week showed a continued high buying interest among ETF investors, Commerzbank's commodity analyst Carsten Fritsch notes.

US tariff uncertainty drives investor demand

"According to the data, there were net inflows of 92 tons last month. This was almost as much as in February, when the strongest monthly inflows in almost three years were recorded. The WGC attributes this to the price increase and uncertainty caused by the US tariff policy, among other things. Over the course of the first quarter, gold ETF holdings rose by 226 tons, the largest increase in three years."

"The largest inflows were recorded by ETFs listed in the US. However, European and Asian ETFs also registered inflows. Gold ETF holdings reached their highest level since May 2023 at 3,445 tons. Due to the record high gold price level, assets under management (AUM) in gold ETFs were higher than ever before at USD 345.4 billion at the end of March."

"The significant rise in the gold price also ensured that the increase in value terms in the first quarter was the second strongest ever, surpassed only by the increase in the second quarter of 2020. ETF demand was therefore a key driver of the 19% rise in the gold price in the first quarter."

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