Gold ETF inflows hit record in January as holdings and AUM reach new highs, WGC says

January saw record inflows into gold ETFs as reported by the World Gold Council (WGC), with net inflows reaching $19 billion, pushing AUM to $669 billion and holdings to 4,145 tonnes. North America and Asia led the inflows as geopolitical and trade tensions maintained elevated hedging demands. Notably, despite a late-month pullback in prices, the buying activity persisted, indicating that many investors capitalized on the dips to increase their exposure. Furthermore, trading volumes surged to a record $623 billion per day, illustrating heightened market activity amidst fast-moving macro and geopolitical news. Sustained ETF demand could tighten supply in the physical market and reinforce bullish momentum, but market participants must remain cautious of potential reversals due to factors like rising real yields or a stronger dollar.