According to the World Gold Council (WGC), March 2026 saw record-breaking outflows from physically backed gold ETFs (Exchange Traded Funds), primarily driven by North American investors, cutting global inflows in half.
“The month saw a staggering USD 12 billion exit, marking the largest monthly outflow on record. Despite the turbulence, the market managed to secure its seventh consecutive quarter of net inflows, with total assets under management reaching USD 606 billion,” the report stated.
In contrast to North America’s sell-off, Asian markets experienced unprecedented inflows. In Q1 2026, the region witnessed its strongest influx ever, adding USD 14 billion, driven mainly by China’s safe-haven demand amid declining local equities and a weakening currency. Indian investors came second, bringing their quarterly total to USD 3 billion. In March, there was a significant USD 2 billion addition for Asian gold ETFs, making the quarter the most robust one on record.
The World Gold Council report also cites a combination of risk-off conditions in North America, including investors’ tendency to liquidate profitable gold positions, as the reason for the ETF outflows.
“The stronger US dollar and stagnant interest rate projections through September 2027 further impacted demand. Notably, prolonged inflow periods like this were historically only seen during major financial crises, followed by sharp market reversals,” the report remarked.
North America’s monumental USD 13 billion outflow in March was a significant event, ending a nine-month streak of ETF inflows and making it the sole region to witness net outflows in Q1. European funds, on the other hand, experienced modest outflows of USD 154 million, trimming the region’s quarterly inflow to a mere USD 27 million. The continent’s sales, driven by Germany, Italy, and France, closely correlated with price shifts.
While the European Central Bank’s (ECB) hawkish tone and increasing regional yields augmented local investors’ opportunity costs, euro depreciation intensified Swiss losses.
However, the overall global market liquidity remained solid; March’s daily trading volumes averaged USD 525 billion, a 11% rise from February. Over-the-counter transactions soared 13% to USD 272 billion daily, outpacing the 2025 average.