Trading in the global gold market declined by 26 per cent in November, averaging $417 billion a day, against a record high of $561 billion in October, the World Gold Council (WGC) said.
However, global gold volumes remained well above their 2024 average of $232 billion a day. “With gold price volatility decreasing in the month, all sectors saw slower activity,” said the WGC.
OTC trading was lower by 24 per cent month-on-month to $188 billion a day, mainly since LBMA volumes were lower by a fourth at $169 billion/day.
On the other hand, Indian investors continued to bet on physically-backed gold exchange-traded funds (ETFs) for the sixth month in a row in November.
Reduced volatility
The WGC said exchange-traded volumes fell by 26 per cent to $221 billion a day, possibly impacted by reduced gold price volatility in the month. Global gold ETF trading activity plunged by 50 per cent month-on-month, to $8.4 billion a day, from $17 billion in October.
In tonnage terms, global gold market liquidity declined by 26 per cent, averaging 3,167 tonnes a day in November. All segments of the gold market experienced cooler trading activity in the month: LBMA over-the-counter (OTC) trading slipped by 25 per cent to 1,287 tonnes, and COMEX by 24 per cent to 1,129 tonnes a day. This drove prices lower in OTC markets and exchanges.
Global gold ETF trading also cooled by half to 63 tonnes a day.
Inflows narrow
“Global physically backed gold ETFs1 registered their sixth consecutive monthly inflow, adding $5.2 billion in November. Although flows narrowed compared to previous months, they sit well above the 2024 monthly average of $292 million,” the WGC said.
Total assets under management (AUM) reached $530 billion, up 5.4 per cent in November. It was another month-end peak as inflows continued and the gold price continued to rule firm.
Gold ETF holdings were up by 1 per cent at 3,932 tonnes, a record high month-end value. “Notably, global gold ETF inflows remain on track for their strongest year ever,” the council said.
Asian ETFs attracted $3.2 billion in November, the third consecutive monthly inflow. Chinese led the inflows with investments of $2.2 billion.
China’s new VAT reform
“Equity market weakness, a rebounding gold price and geopolitical tensions encouraged gold ETF investment in China and Japan. China’s newly announced VAT reform may have further boosted flows as jewellery buyers with investment motives turned to gold ETFs to avoid the additional tax,” said the WGC.
In India, investments continued for the sixth month in a row, with an attractive local gold price supporting the inflows. South Korea has begun to show strong interest in gold as local investors sought hedges against the volatile stock market, though the WGC is yet to capture it in its datasets.
The council said investments in North America, too, continued for the sixth consecutive month, with $1 billion being added to the inflows. However, they were subdued compared with previous months.
Investments were encouraged by the upward trend in gold price, which ended the month with a 4.5 per cent gain. Investor expectations of a Fed cut intensified, as softer inflation indicators provided reassurance, and geopolitical risks resurged amid rising US-Venezuela tension.
Cooling expectations
However, investments were partially offset by cooling investor expectations, during most of November, of a December Fed cut amid resilient economic data and hawkish Fed minutes and lowering geopolitical tensions earlier in the month due to progress toward peace in Ukraine.
With swings in the equity market, local investors may have sought to cover losses in other areas by selling gold ETFs and benefiting from their vast liquidity and strong year-to-date performance, limiting investments, the WGC said.
European investments turned positive at $978 million in November. Equity weakness and gold price strength, in local currencies, contributed to the shift, with the UK and Germany leading inflows in the region.
Published on December 8, 2025
