Gold prices surpassed $4,550 per ounce on Wednesday, recovering slightly from a sharp sell-off in March as news emerged of US efforts to end the war with Iran eased investor concerns.
At the same time, oil prices plummeted following this news, with West Texas Intermediate falling to just $86.72 per barrel.
Demand for gold ETFs remains strong despite volatility in March 2024.
In recent weeks, gold has been under strong selling pressure as geopolitical tensions between the US, Israel, and Iran escalate. Since the beginning of March, the precious metal has fallen by more than 13.6%, lagging significantly behind Bitcoin (BTC) over the same period.
The outflow of funds from gold investment funds also indicates short-term weakness. According to a report from BeInCrypto, the SPDR Gold Shares (GLD) fund recorded its largest single-day Capital since 2016 on March 4, 2024, with approximately $2.91 billion withdrawn in a single trading session.
Despite recent unfavorable conditions, the long-term outlook for gold-tracking funds remains very positive.
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Data Chia by The Kobeissi Letter shows that GLD's assets under management (AUM) have increased to approximately $181 billion, nearly reaching a record high.
Notably, the total assets of this ETF have doubled in less than a year, indicating that investors continue to want to hold gold in the long term. According to BeInCrypto, since Q2 2025, retail investors have purchased more than $70 billion worth of gold ETFs.
Over a period of eight years, the value of assets in this fund increased by more than 500%.
"Demand for investing in gold remains at unprecedented levels," The Kobeissi Letter noted .
Data on reserves continues to reinforce this trend. GLD's gold holdings have increased to approximately 1,098 tonnes, the highest level since April 2022 and the second highest since February 2021. Since March 2024 alone, reserves have increased by approximately 274 tonnes.
However, current reserves have yet to reach the record high of 1,351 tonnes recorded in December 2012, suggesting there is still room for further accumulation if optimistic sentiment returns.
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