LONDON, July 9 (V7N) – Physically backed gold exchange-traded funds (ETFs) recorded their largest semi-annual inflow since the first half of 2020, as per data released by the World Gold Council on Tuesday, as reported by Reuters.

From January to June 2025, these gold-backed ETFs attracted substantial investment, reflecting growing demand for the precious metal. The surge in inflows is attributed to several economic and political factors, including rising concerns over geopolitical instability and inflationary pressures.

The increasing uncertainty in global markets, particularly as a result of economic fluctuations and political tensions, spurred investors to seek safe-haven assets such as gold. Gold ETFs have historically been a significant component of investment demand for gold, offering a convenient vehicle for investors to gain exposure to the precious metal without the need for physical possession.

The period of significant inflows mirrors a similar trend in 2020 when a trade war instigated by U.S. President Donald Trump’s tariff policies led to a spike in gold ETF investments. At the time, investors were driven to secure their assets from the volatility induced by the trade war, which sent markets into turmoil.

The recent uptick in gold ETF investments signals that, despite global economic recovery efforts, concerns about future market stability remain high. Investors appear to be hedging against potential economic downturns and unforeseen political events by increasing their exposure to gold, a traditional safe-haven asset.

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