Key Insights:
- Gold ETFs reach $190B in assets, the highest in history.
- Central banks and investors are rapidly shifting toward gold.
- Rising global risk is driving a major flight to safe-haven assets.
Gold ETFs reached a record $190 billion in assets under management, marking a historic high in global investor demand. Over the past two years, holdings grew by nearly $100 billion, driven by geopolitical tensions, persistent inflation, and shifting central bank reserve strategies.
Investor Flows Push Gold ETF Assets to Historic Highs
Gold ETFs, led by SPDR Gold Shares ($GLD), have seen a rapid increase in capital inflows since early 2023. $GLD alone now manages over $100 billion in assets for the first time, underscoring a broad shift toward gold as a hedge against rising volatility. According to data from Topdown Charts and LSEG, the acceleration in ETF flows began following a multi-year consolidation between 2011 and 2023.
The sharp upward trend seen in the chart Gold ETF Assets illustrates this breakout. The pace of growth in gold ETF assets is now comparable to previous gold bull markets, such as those seen in the 1970s and post-2008 financial crisis period. Analysts attribute the current rise to both retail and institutional demand for safe-haven assets amid concerns over global credit conditions and monetary stability.
Central Banks Diversify FX Reserves Into Gold
Recently also there has been a gradual reduction in exposure of China to the U.S treasuries and a corresponding buildup of gold. The proportion of gold in the Chinese total foreign exchange (FX) reserves has risen to over 7% between 2015 and Q1 2025, having been approximately 1% in 2015. During the same time, the U.S. Treasury holdings had fallen to more than 30% as compared to 44%.
This shift implies an even greater tendency of central banks to shift the reserves to a more diversified portfolio of their reserve assets beyond the U.S. dollar. An impartial and non-sovereign store of value like gold seems to be picking up. Following the changes in geopolitics, particularly between the U.S. and China, gold in international reserves might remain on the surging path.
Market analysts indicate that the trend might be spread to other emerging markets as well as those developing economies predominantly enriched with reserves, which further increases the structural demand for gold in the forthcoming years.
Gold Spot Price Rally Supported by Macro Trends
The momentum has also been recorded at the spot price of gold, which is surging steeply towards the mark of $3,500 per ounce. A chart of the historical gold spot prices since 1920 indicates that the preceding bull markets were experienced in a time of disruption or shift in the economic policies. These are the death of the gold standard in 1933, a meltdown of the Bretton Woods system in 1971, and the worldwide economic crisis in 2008.
More recently, factors like the Russia-Ukraine war at the end of 2022, the trade war U.S.-China and political indecision surrounding the 2024-2025 election have added fuel to the price of gold. The poor economic conditions and inflation characteristic of the developed economies remain a factor contributing to assets demand as being considered stable in any uncertain situations.
The rise in the price of gold is also fortified by the fall in real yields, world debt creation, and heightened hedging activity among institutional and retail investors.
Technical Chart Supports Further Upside for Gold
According to market analyst @andressa_trader, saying that there is likely to be more bullish enthusiasm with gold. The price of gold spot (XAU/USD) has just gained a breakout above a period of consolidation and is currently being held above another key price level of $3,398.60. The uptrend will most likely continue to the level of 3,500 and possibly 3,600, as long as price action holds as support.
The chart featured higher highs and higher lows, a structure that typically supports strong uptrends. The shaded “buy-only” zone suggested minimal downside risk unless the price broke below support. Momentum remained strong as long as price action stayed above key levels.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
Olivia Stephanie is a FinTech enthusiast with a keen understanding of financial markets. Her passion for economics and finance has led her to explore emerging blockchain technology and cryptocurrency markets.