Commodity ETF Sees Over $11 Billion in Net Outflows in a Single Month, Setting a New Record

On March 25, commodity ETFs posted their largest-ever fund outflows amid escalating Middle East tensions, per Bloomberg Industry Research data. Roughly $11 billion has flowed out of nearly 100 ETFs focused on precious metals and diversified commodities since March—marking the largest monthly net outflow since 2005 and ending nine straight months of net inflows. Gold was a key sell-off target: the world’s largest gold ETF, SPDR Gold Shares, saw redemptions topping $7 billion, while silver ETFs recorded outflows of around $1.4 billion. Analysts note profit-taking from gold’s prior gains, combined with expectations for high interest rates and a strong dollar, has dented gold’s appeal—with the “cash is king” narrative dominating markets. Meanwhile, oil market volatility spiked as the Strait of Hormuz blockage disrupted crude shipments, pushing Brent crude to roughly $104 per barrel. Some funds shifted to energy products, and the United States Oil Fund (USO) unexpectedly drew about $400 million in inflows this month. Institutions highlight this round of outflows is mainly driven by gold and silver, reflecting growing expectations for market differentiation.