Gold’s Historic Quarter

Gold hit its 39th all-time high of 2025 in September, driven by continued political tensions, a weakening U.S. dollar, and record options market activity. The metal’s stellar run culminated in its strongest quarter on record, underpinned by massive inflows into physically backed gold ETFs. Global gold ETFs attracted US$26 billion in Q3 the largest quarterly inflow ever lifting total assets under management to US$472 billion, up 23% quarter-on-quarter. 

North American investors led the charge with US$16.1 billion in inflows, their second-largest quarter on record, supported by expectations of further Fed rate cuts, a weaker dollar amid government shutdown risk, and demand for safe-haven assets as equities showed signs of fatigue. European funds added US$8.2 billion, led by the UK, Switzerland, and Germany, reflecting both inflation-driven hedging and momentum buying amid stagnating real rates. Meanwhile, Asian investors contributed US$1.7 billion, as strength in local gold prices and macro uncertainty in China, Japan, and India drove buying. 

Trading volumes surged to an average of US$388 billion per day, highlighting the scale of repositioning across global markets. With equities on edge entering October, gold remains a favored hedge despite its sharp rise. The “West won’t rest” theme persistent Western demand amid macro stress continues to dominate, suggesting that even after a record-breaking quarter, gold’s appeal as a store of value and inflation hedge remains robust heading into Q4.