Invesco: Gold ETF fund inflows turn positive, and the price increase trend may continue
Invesco Asia-Pacific Global Market Strategist Zhao Yaoting stated that although gold prices have surpassed the historical high of $4,000 per ounce and have deviated from traditional valuation drivers, there is still potential for continued upward momentum. The inflow of funds into gold ETFs has turned positive, indicating a resurgence of investor interest in the gold market. Zhao Yaoting pointed out that the rise in gold prices may reflect the turmoil in U.S. policies and the increase in systemic risks, and it is expected that central banks will continue to purchase gold, urging investors to be cautious in their allocations
According to the Zhitong Finance APP, gold prices have surpassed the historic threshold of $4,000 per ounce, making gold one of the best-performing major assets in 2025. Zhao Yaoting, a global market strategist at Invesco Asia Pacific, stated that even though gold has reached historical highs and has deviated from traditional valuation drivers such as the dollar and real interest rates, and despite prices appearing high, there is still a possibility for the price increase to continue.
Zhao pointed out that the surge in gold prices not only reflects its strong performance but may also serve as a warning signal regarding the turbulence in U.S. policies. With the White House implementing unconventional reforms, the momentum of U.S. economic growth slowing down, and the U.S. government questioning the independence of the Federal Reserve, investors may have reason to view the rise in gold prices as an indicator of increasing systemic risk.
He noted that although gold recorded double-digit returns in both 2023 and 2024, investor participation through ETFs remained sluggish, with holdings actually declining during this period. In contrast, the strong performance of gold so far in 2025 seems to be attracting investors back to the market, with inflows into gold ETFs turning positive. If this trend continues, the return of investors to the gold market could become a significant driver of gold prices.
He stated that gold may be the only tool capable of hedging against U.S. risks and expects central banks to continue purchasing gold. Given that gold has historically failed to provide the actual return potential of stocks or the downside protection of bonds, investors still need to exercise caution in controlling their allocation size
