Gold ETFs Surge Amid Trump Presidency, With Tokenisation on the Horizon

ETF inflows push bullion to record highs as geopolitical risks and Fed concerns dominate investor sentiment

Gold is glistening once again, with ETFs driving record demand as the precious metal trades above $3,500 an ounce. Investors are turning to bullion amid escalating geopolitical tensions, a weakening U.S. dollar, and market uncertainty surrounding President Donald Trump’s policies, particularly his challenges to Federal Reserve independence.

According to World Gold Council data, net inflows into gold ETFs reached $41.3bn in the first seven months of the year, lifting global gold ETF assets under management to $386bn. The trend has continued through August and September, with buying momentum showing little sign of slowing despite elevated prices.

The strong flows highlight the asset’s appeal as a hedge. While gross outflows amounted to 467.8 tonnes ($39.4bn), inflows were more than double at 887.6 tonnes ($80.8bn), reflecting robust investor conviction.

Goldman Sachs has forecast gold could reach $4,000 an ounce by mid-2026, with potential to move toward $5,000 if even a small percentage of Treasury holders rotate into gold ETFs. The bank warned that erosion of Fed independence could trigger higher inflation, weaker equities and bonds, and declining U.S. dollar credibility—all factors that historically support gold demand.

Tokenisation: A New Competitor for Gold ETFs?

Even as ETFs dominate flows, a new innovation could reshape gold investing: tokenised gold. The World Gold Council and London Bullion Market Association (LBMA) have unveiled plans for “pooled gold interests” (PGIs)—digital tokens backed by gold that would allow investors to hold fractional units as small as one-thousandth of an ounce. A pilot is expected in early 2026.

Dozens of gold-linked tokens already exist, but backing from the WGC and LBMA—two central players in global bullion markets—signals a major step toward institutional adoption. Advocates, argue tokenisation could enable faster settlement, improve liquidity, and reduce the need for physical transfers between global vaults.

Still, challenges remain. The history of cryptocurrency is riddled with thefts and scandals, and building investor trust in digital gold tokens could take time. For now, ETFs remain the most established vehicle for institutional and retail exposure to bullion.

Outlook

With global tensions intensifying and investors increasingly wary of U.S. monetary policy, gold’s safe-haven appeal looks set to remain strong. Whether through traditional ETFs or future tokenised formats, investor appetite for gold exposure continues to expand—keeping the world’s oldest store of value firmly in the spotlight.