While the West hesitates, Asian investors are quietly accumulating gold.

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An intriguing crack is appearing in the gold market: Western investors are persistently withdrawing, while Asian buyers are entering against the trend.

According to Bloomberg macro strategist Simon White, although American and European investors are becoming cautious towards gold, the demand in Asian markets remains strong. Last week, gold prices rebounded strongly near the $4,000 mark. Previously, news of an Iran peace agreement briefly suppressed gold prices, but Asian buyers did not retreat. This divergence is becoming an important signal for observing the direction of the gold market.

For the market, the divergence in demand between East and West means that the structural support for gold is undergoing a shift. Western ETF funds continue to flow out, while Asian ETFs are rapidly expanding. The persistent divergence in their trends may have profound implications for the medium-term movement of gold prices.

Western ETF funds keep flowing out, Bitcoin’s appeal may briefly return

Gold is currently trying to find support above the $4,000 mark.

Last week, after news related to the Iran peace agreement emerged, gold prices rebounded strongly from that level, but Western investors have not slowed their pace of withdrawal.

According to Bloomberg, large gold ETFs mainly registered in the United States are showing growing capital outflows. Meanwhile, capital outflows from Bitcoin ETFs are starting to ease, which may suggest that some investors are shifting preferences back to cryptocurrencies rather than physical gold.

However, Simon White believes that to conclude that gold is losing its status based on this signal alone may be too hasty.

Hong Kong and India take the lead, Asia imports large amounts of gold from Switzerland

Demand for gold in Asian markets is clearly confirmed by trade data. As the world’s largest gold exporter, Swiss export data indicates that Hong Kong and India are currently the two largest importers of Swiss gold, surpassing all other countries.

This trade data aligns closely with changes in global ETF holdings. U.S. gold ETF holdings keep declining, European ETFs remain largely unchanged, while the scale of Asian gold ETFs continues to climb rapidly, with almost no signs of retreat.

Simon White points out that the size of Asian gold ETFs is still smaller than their Western counterparts, but this is likely just the tip of the iceberg regarding true Asian gold demand—Swiss export data clearly reflects this.

Recent weakness in gold prices has not shaken Asian buyers—the significance of this signal cannot be ignored

In Simon White’s view, Asian investors’ enthusiasm for gold has not diminished despite the recent pullback in gold prices; this phenomenon itself is a market signal that should not be easily ignored.

While Western investors waver between gold and Bitcoin, Asian capital is accumulating gold positions in a steady and consistent manner. This resilience in demand suggests that Asian buyers’ logic for gold allocation does not depend on short-term price momentum, but is more likely rooted in deeper asset allocation needs.

For investors watching the gold market, rather than focusing closely on Western ETF fund flows, it may be more worthwhile to turn attention to Asia—where the true driving force for the next round of gold prices may lie.

Risk Warning and DisclaimerThe market involves risks, and investment requires caution. This article does not constitute individual investment advice and does not take into account users’ specific investment objectives, financial situation, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this article is at your own risk. ```