Geopolitical tensions and global instability, such as the Iran War Escalation and Hormuz Blockade, tend to increase demand for safe-haven assets like gold, positively impacting the ETF's value.

Rising inflation, evidenced by the US March CPI jumping to 3.3% and Euro Area inflation increasing to 2.6%, typically enhances gold's appeal as a hedge against the erosion of purchasing power in fiat currencies.

Central bank monetary policy decisions, particularly regarding interest rates, indirectly affect gold prices; higher rates can make non-yielding assets less attractive, while lower rates or expectations of future cuts can boost gold's appeal.