It appears [in ETFs] Americans buy the highs and sell the lows while China just never stops buying.

Asian gold demand remains firm even as Western ETF investors continue to pull back, according to Simon White of Bloomberg. U.S. gold ETFs are losing metal, Europe is steady, and Asian ETFs and Swiss export flows remain strong. Gold’s $4,000 support may echo 2022, when Asian buying absorbed Western selling.

Asia’s Gold Demand Holds Up as Western ETF Investors Pull Back

Authored by GoldFix 

Simon White, Bloomberg macro strategist, wrote a new piece on the differential between Asia and Western Gold demand. The analysis highlights a widening regional divide in the gold market: Asian demand remains strong, while investors in the United States and Europe remain more cautious.

Gold is trying to establish support above the $4,000 level. The metal bounced sharply from that threshold last week as news of an Iran peace deal moved through markets. The rebound was notable because it came during a period when Western ETF demand has continued to weaken.

“Gold is trying to find a base above the $4,000 level.”

The pressure is clearest in the ETF market. Outflows from the largest gold ETFs continue to build, and most of those funds are domiciled in the United States. European gold ETFs, by contrast, are holding roughly steady rather than showing the same level of selling pressure.

 

White also notes that Bitcoin ETF outflows have started to ease. That may suggest some renewed investor preference for crypto over bullion, though he cautions against reading too much into that comparison.

“Gold investors in the US and Europe should pay attention to what Asian investors are doing.”

The Asian side of the market is showing a different pattern. Hong Kong and India are currently importing more gold from Switzerland than any other countries. Because Switzerland is the world’s largest gold exporter, those flows provide an important indication of where physical demand is concentrated.

 

That same regional contrast is visible in ETF holdings. U.S.-based gold ETFs are losing metal. European ETFs are broadly stable. Asian gold ETFs continue to rise quickly and show little sign of pulling back.

White notes that Asian gold ETFs are still smaller than their Western counterparts. However, he argues they likely represent only part of the broader Asian appetite for bullion, especially when considered alongside the Swiss export data.

“Asian gold ETFs are smaller than their Western ETFs, but it is likely only the tip of the iceberg for the true appetite Asia has for gold.”

The main point of the analysis is that gold’s recent weakness has not meaningfully reduced Asian demand. That is the signal White says should not be overlooked.