Gold climbed above $4,550 per ounce on Wednesday, marking a modest recovery from a sharp March sell-off as reports of US efforts to end the Iran war eased investor concerns.
At the same time, oil prices dropped sharply on the news, with West Texas Intermediate falling to $86.72 per barrel.
Gold ETF Demand Remains Strong Despite March Turbulence
Gold came under heavy selling pressure in recent weeks as geopolitical tensions between the United States, Israel, and Iran intensified. Since early March, the precious metal has declined by more than 13.6%, significantly underperforming Bitcoin (BTC) over the same period.
Investor outflows have further highlighted the short-term weakness. According to a report by BeInCrypto, the SPDR Gold Shares (GLD) recorded its biggest single-day outflow since 2016 on March 4, with approximately $2.91 billion withdrawn in a single session.
Despite the recent downturn, the broader outlook for gold-backed investment vehicles remains constructive.
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Data shared by The Kobeissi Letter shows that assets under management (AUM) in GLD have climbed to around $181 billion, placing it near record highs.
Notably, the ETF’s AUM has doubled in less than a year, highlighting sustained investor interest in gold exposure over the longer term. BeInCrypto recently highlighted that since Q2 2025, retail investors have bought over $70 billion in gold ETFs.
Over an eight-year horizon, the value of assets held within the fund has surged by more than 500%.
“Demand for gold investments is still unprecedented,” The Kobeissi Letter wrote.
Holdings data further reinforces this trend. GLD’s gold reserves have risen to approximately 1,098 tonnes, the highest level since April 2022 and the second-highest since February 2021. Since March 2024 alone, holdings have increased by roughly 274 tonnes.
However, current levels remain below the all-time high of 1,351 tonnes recorded in December 2012, suggesting there is still room for further accumulation if bullish sentiment returns.
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