Commodity ETFs saw net outflows of over $11 billion in a single month, marking the largest withdrawal in history.

According to Mars Finance, on March 25th, commodity ETFs experienced their largest-ever outflow of funds due to the escalating situation in the Middle East. Bloomberg industry research data shows that since March, approximately $11 billion has flowed out of nearly 100 ETFs covering precious metals and general commodities, marking the largest single-month net outflow since 2005 and reversing a nine-month streak of net inflows. Gold was the hardest hit, with the world's largest gold ETF, SPDR Gold Shares, experiencing redemptions exceeding $7 billion, and silver ETFs also seeing outflows of approximately $1.4 billion. Analysts say that the previous rise in gold prices led to profit-taking demand, coupled with expectations of high interest rates and a strong dollar, weakening gold's appeal, and the "cash is king" logic dominating the market. Meanwhile, the disruption to shipping in the Strait of Hormuz exacerbated volatility in the oil market, with Brent crude rising to around $104 per barrel. Some funds shifted to energy products, with the US Oil Fund (USO) attracting approximately $400 million this month against the trend. Institutions point out that this round of outflows was mainly driven by gold and silver, reflecting the current widening divergence in market expectations.