The world’s biggest spot Gold Exchange-Traded Fund (ETF) recorded its largest single-day outflow since March 4, 2016, on March 5, 2026.
The SPDR Gold Shares (GLD), which has around $176.5 billion in assets under management (AUM) at press time, recorded a net cash outflow of about $2.91 billion on Wednesday, March 4.
GLD ETF cash flow for 10 years. Source: X
Why did the GLD ETF have its largest outflow?
The primary reason why GLD ETF recorded its largest cash outflow in the past decade is largely due to the macroeconomic impact. The ongoing Middle East conflict has interfered with the global supply chain of gold, thus resulting in low demand for gold among precious metals investors.
“Many buyers have stepped back from new orders, unwilling to pay exceptionally high shipping and insurance costs with no guarantee of prompt delivery. As a result, rather than paying indefinitely for storage and funding, traders are offering discounts of as much as $30 an ounce to the global benchmark in London,” according to Tracy Shuchart, a senior economist at NinjaTrader Group.
Meanwhile, the GLD ETF holders could be reacting to a potential top-out for the gold price following its parabolic rally in 2025. After the price of gold dropped from its all-time high (ATH) of about $5,600 per ounce to its 2026 low of around $4,407/oz, its bullish momentum has faded.
Despite the notable demand from global central banks due to the ongoing dedollarization, the price of gold has been trapped in a horizontal consolidation.
