Gold funds surge as investors seek safe haven amid tariff concerns

Investors are pouring cash into gold funds at the fastest pace since the COVID-19 pandemic, amid mounting concerns over the economic impact of U.S. President Donald Trump’s tariff war.

According to a report from the Financial Times, investors have funneled more than $19.2 billion into gold-backed exchange-traded funds (ETFs) during the first quarter of this year—the largest inflows in dollar terms since the pandemic, based on calculations from Standard Chartered.

Gold surged to a record $3,148.88 per troy ounce on Tuesday as part of a broader flight to haven assets such as U.S. Treasuries and cash. It later fell back to $3,114 but remained up more than 17% this year, marking its strongest quarterly performance since 1986.

Investors are bracing for Trump’s expansive new tariffs, which are set to be announced Wednesday—a day he has dubbed “Liberation Day.” Many economists fear the move will hinder global growth, prompting a search for safe assets.

Central bank buying has been a key driver of gold purchases in recent years. However, the recent surge in gold ETF inflows underscores how concerns about the economy and stock markets have attracted a broader range of investors seeking haven assets.

“The resurgence in ETFs has been the most notable shift in gold dynamics in recent weeks,” said Suki Cooper, a precious metals analyst at Standard Chartered. Expectations of lower yields on other assets, combined with fears that tariffs could impact inflation and growth, have fueled the recent flows, she said.