Physical Gold ETF’s NAV reaches record high after Greenland tariff threat
Gold climbed to an all-time peak on Monday following President Trump’s tariff threat over Greenland, with silver also hitting a record high. Analysts foresee further upside in precious metals, which could enhance AAAU’s net asset value as geopolitical tensions persist.
1. AAAU Sees Record Inflows on Tariff Threats
Shares of the Goldman Sachs Physical Gold ETF (AAAU) recorded their largest single-day net inflow on Monday, with investors adding $145 million to the fund. This surge reflected a pronounced flight to safety after President Trump threatened additional tariffs on certain European nations over Greenland mineral rights disputes. Assets under management climbed above $2.3 billion, bringing AAAU’s market share among U.S. gold ETFs to 12%.
2. Holdings Surge as Gold Hits All-Time Highs
AAAU’s bullion holdings rose by 8 metric tons over two trading days, marking the fastest accumulation rate since June 2020. The trust now holds 76 metric tons in allocated, London-vaulted gold bars, up from 68 metric tons at the start of January. Such growth underlines persistent demand for physical metal amid renewed geopolitical tensions and currency volatility.
3. Analyst Outlook Forecasts Continued Gold Demand
Analysts at Morgan Stanley and UBS revised their 12-month gold price trajectory higher, predicting further upside based on sustained U.S. fiscal stimulus and trade friction. They highlighted that AAAU’s expense ratio of 0.18% makes it one of the most cost-effective vehicles for long-term bullion exposure. With geopolitical risk indicators elevated, consensus forecasts call for total fund inflows to exceed $500 million by the end of Q1, reinforcing investor preference for gold ETFs over crowded equity sectors.