With gold prices ruling around $4,000 an ounce, there was renewed investment interest.
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Physically backed gold exchange-traded funds witnessed net positive investments of $2.62 billion last week as investors in the US and China led the return, data from the World Gold Council (WGC) showed.
According to analysts and experts, with gold prices ruling around $4,000 an ounce, there was renewed investment interest.
WGC data showed that investments last week were $3.36 billion, while exits were $750 million. At $1.55 billion, the US led the return to gold ETFs, followed by China at $633 million.
Crucial floor
“The support of $4,000 remains a crucial floor for the metal,” said Colin Shah, founder and managing director of Kama Jewelry. “The long-term structural demand will continue to be resilient with mild jitters based on real-time economic developments,” he said.
Renisha Chainani, head of research at Augmont, said with the US Fed’s decision coming up next week and no sign that West Asia tensions are cooling, gold and silver are likely to stay highly reactive to news developments.
“A softer tone from the Fed or fresh conflict in the Gulf could bring haven buying back,” she said.
Last week, investments in North America were $1.57 billion, while they were $622 million in Asia, followed by Europe at $388.5 million. Country-wise, after the US and China, investors in the UK chipped in with $171.5 million.
US inflows negative
Year-to-date, net investments in North America are negative, with investors exiting to the tune of $7.14 billion. But outflows from the US were higher at $7.52 billion.
Asia is holding ETFs on the positive side with total investments at $12.55 billion. China leads the trend with $6.03 billion inflows, though they are down from over $9.5 billion in March. At $3.86 billion, Indian inflows are the second biggest. Japan ($693 million), Hong Kong Special Administrative Region ($948 million) and Singapore ($316 million), too, contributed to the net positive inflows in the ETFs.
Investments in Europe are also positive at $4.63 billion, led by the UK at $2.66 billion. Switzerland inflows are a significant $2.21 billion. However, investors in France (-$254.5 million) and Italy (-$209 million) lead the outflows from gold ETFs.
Roller coaster ride
Gold ETFs have been going through a roller coaster ride after the Iran war broke out on February 28. Fears of inflation, rise in bond yields, hike in US Fed rates and consumers shifting to crude oil counters from gold have all weighed on the yellow metal.
Since hitting a record high of $5,608 an ounce on January 29, the precious metal has dropped by over 25 per cent. At 21.15 hours IST on Monday, it was quoted at $4,077.37 an ounce.
Gold had a sizzling rally between 2024 and February 29, 2026, on hopes of a cut in US Fed interest rates, a volatile geopolitical situation and the US trade dispute with other nations, particularly China.
Published on July 27, 2026
