Historic Surge in Gold Fund Inflows Breaks Records

Over the last six months in 2025, gold funds have experienced an unprecedented surge, with inflows totaling about $50 billion. This amount surpasses the combined inflows recorded over the previous 14 years, marking a historic record for gold investments. A striking example is that in just one notable week ending in October 2025, gold funds attracted $8.7 billion, the largest weekly inflow ever recorded, coinciding with gold prices hitting a peak above $4,398 per ounce before retreating. This surge is driven by factors such as geopolitical tensions, inflation, currency devaluation concerns, and monetary policies promoting gold as a safe-haven asset and portfolio stabilizer. Institutional investors increasingly view gold as an essential risk management tool rather than merely a speculative asset.

Among the gold funds, the iShares Gold Trust (IAU) stands out as a leading beneficiary of these inflows. It is one of the largest and most actively traded gold ETFs, having pulled in a significant share of the historic $50 billion inflow in 2025. Along with other major gold ETFs like SPDR Gold Shares (GLD), iShares Gold Trust has capitalized on the macroeconomic drivers fueling the gold rally. Specifically, iShares ETFs, which include IAU, attracted record fresh capital inflows in September 2025, with iShares alone pulling in $50 billion across its various ETFs, fueled by rebalancing and model portfolio allocations. The commodities-focused ETF category, dominated by physically-backed gold funds, saw a major surge, reflecting investor demand for safety amid economic uncertainties. This massive inflow into IAU and similar funds highlights the shift in investor behavior towards gold as a primary safe haven asset in global portfolios.

In a broader context, while gold ETFs have seen periodic inflows over the past 14 years, none approach the scale seen in the recent months. For example, prior annual inflows such as the $24 billion peak in 2016 are now dwarfed by the record-breaking capital flows in 2025. The surge also coincides with gold doubling in price since late 2022, making gold ETFs a favored destination for investors seeking protection from inflation and financial market volatility.