Gold is heading into the last quarter of 2025 with strong upward momentum, buoyed by record inflows into gold-backed exchange-traded funds (ETFs), surging trading volumes, and continued investor demand for safe-haven assets amid global economic uncertainty.
According to the World Gold Council, physically backed gold ETFs attracted a record $26 billion in inflows during the third quarter — the highest quarterly total ever recorded. The surge pushed total assets under management (AUM) to $472 billion, a 23% increase compared to the previous quarter, with total holdings climbing to 3,838 tonnes — just 2% shy of the all-time high set in November 2020.
Strong Regional Demand
North America led the rally with $16.1 billion in inflows — the region’s second-largest quarterly gain on record — followed by Europe with $8.2 billion. The UK, Switzerland, and Germany were the key drivers of European demand, as investors sought refuge from persistent inflation and sluggish economic growth.
Asian markets also posted steady gains, contributing $1.7 billion to the global total. India led the region with $902 million in inflows in September alone, supported by favorable currency movements and growing risk aversion amid weak local equities and heightened geopolitical tensions.
Record Prices and Market Volatility
The price of gold set 13 new all-time highs in September, driven by a mix of macroeconomic and policy-related factors. Analysts attributed the rally to ongoing geopolitical risks, a weaker U.S. dollar, and expectations of further interest rate cuts by the Federal Reserve, which lowered rates by 25 basis points last month.
Investors also turned to gold as a hedge against potential equity market corrections following a year of record-high valuations. The combination of these factors has reinforced gold’s dual role as both a defensive and strategic asset.
Trading Volumes Surge
Trading activity in the gold market surged sharply in September, averaging $388 billion per day — a 34% increase from August and the second-highest monthly volume this year. Exchange-traded volumes rose by 66%, led by COMEX and the Shanghai Futures Exchange, while over-the-counter transactions increased by 12%.
ETF trading volumes reached $8 billion per day, with North American funds accounting for nearly 80% of the activity. COMEX net long positions climbed 23% to 806 tonnes — the highest since September 2022 — signaling growing investor confidence in gold’s continued strength.
Bullish Outlook for Q4
Analysts expect gold’s strong performance to continue into the final quarter of 2025, citing persistent economic uncertainty, central bank caution, and strong technical support. Europe is likely to remain a key driver of demand amid stagflation concerns, while Asian appetite could grow further if local currencies stay stable.
In the U.S., fiscal challenges and political divisions are expected to keep the dollar under pressure, further enhancing gold’s appeal. With record ETF inflows, rising prices, and sustained trading momentum, gold appears poised to maintain its upward trajectory as the year draws to a close.
