Gold exchange-traded funds (ETFs) have reemerged as one of the main destinations for retail liquidity in Iran’s capital market. Official data show that from the beginning of the current Iranian year (March 2025) to November 10, around 360 trillion rials ($320 million) in net retail inflows entered gold ETFs — marking a strong rebound after earlier outflows.
In the first two months of the year, these funds experienced net withdrawals of nearly 75 trillion rials. Since mid-June, however, inflows have accelerated, turning the balance positive and signaling renewed investor confidence in gold-backed instruments. Currently, 28 gold ETFs are active in the market, investing mainly in gold coin and bullion certificates traded on the Iran Mercantile Exchange.
A turning point came after the 12-day conflict earlier this year, when trading was temporarily suspended. Following the market’s reopening, more than 428 trillion rials of retail money poured into gold ETFs, underscoring their role as a safe haven during periods of heightened uncertainty.
Analysts say small investors increasingly prefer ETFs over physical gold to hedge against inflation and currency volatility. This shift has helped ease pressure on the physical market, curbing speculative demand and sharp price swings.
Rising global gold prices and a stronger US dollar have also boosted domestic returns, further fueling demand for these funds. With low entry costs and high liquidity, gold ETFs have become an accessible tool for households seeking stability amid market turbulence.
Experts believe the sector now plays a dual role: protecting household savings from inflation while contributing to greater stability in Iran’s gold market. If current currency and global trends persist, gold ETFs are expected to remain a key investment channel in the months ahead.