Investors pour into gold ETFs as Iran conflict adds to the funds' appeal

Gold ETF demand is accelerating on geopolitical risk, with Bank of America-cited data (via The Kobeissi Letter) showing global gold funds taking in +$6.2bn last week (3rd straight weekly inflow streak) and a record +$148bn annualized YTD pace—on track to exceed the 2025 record of +$101bn and run ~200% above 2020’s pandemic-year inflows. The article frames the catalyst as escalating Iran-related conflict alongside sharp global equity declines, reinforcing gold’s safe-haven bid. India-based commentary highlights that bullion ETF flows are being led by key Asian markets as energy supply disruption risk rises in the Middle East. Mirae Asset’s Siddharth Srivastava argues gold ETFs are typically the primary geopolitical hedge while silver participates but is more tethered to industrial demand; he suggests holding both but with a higher weight in gold. A second adviser (Asset Elixir’s Shivam Pathak) echoes that gold ETFs react faster and more “purely” to conflict-driven uncertainty. From an allocation lens, both advisers cite a 10–15% portfolio allocation to precious metals ETFs, skewed toward gold. Separately, The Motley Fool notes gold’s strong momentum backdrop—citing +64% in 2025 and +18% YTD in 2026 versus ~+1% for the S&P 500—while flagging that such returns are atypical; the bullish underpinning is framed as inflation/economic uncertainty plus money-supply growth and fiscal concerns. Near-term catalysts implied by the piece are any escalation/de-escalation in the Iran conflict (risk premium), and follow-through (or reversal) in ETF creations/redemptions as equity vol evolves. Key risk: if geopolitical tensions fade quickly and equities stabilize, ETF inflows could slow or reverse, compressing the risk premium; silver may underperform gold in a risk-off environment if industrial-demand fears dominate.