Stack of gold bars.
| Photo Credit:
DigitalVision
Investments in physically backed gold exchange-traded funds (ETFs) continued to be positive for the third week in a row last week.
With gold prices gaining over 6 per cent in the week, exits made up $3 for every $10 investments, data from the World Gold Council (WGC) showed.
In the week ended August 7, inflows, led by the US, China and the UK, into gold ETFs were $4.38 billion, while outflows, led by the US, were $1.33 billion. This left inflows net positive at $3.04 billion.
Net up $13.69 billion YTD
Year-to-date, net investments in the ETFs are positive at $13.69 billion with $92.99 billion being the inflows and $79.3 billion outflows. China and India continue to keep inflows in gold ETFs positive with investments to the tune of $11 billion.
Last week, investors in Canada redeemed $526 million, while those in other parts of the world chose to invest. Investments were led by the US at $1.6 billion, followed by China at $796 million. British investors chipped in with $663 million, while inflows in Switzerland and Germany were over $200 million.
Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions Ltd and President of India Bullion and Jewellers Association Ltd, said gold surged roughly 6.6 per cent last week to near $4,350/oz after July payrolls fell by 23,000 against expectations of an 80,000 gain. This pushed Fed rate-hike odds for September down to 44 per cent from 55 per cent.
Support zone
Unresolved Strait of Hormuz tensions and a US-Japan intervention to support the yen added further volatility. The rupee held between 94.89–95.46. Indian demand stayed investment-led ahead of the festive season.
“Gold’s $3,950–4,000 levels are the support zone,” he said.
Darshan Desai, CEO, Aspect Bullion & Refinery, said the yellow metal continues to remain well supported after recently touching a seven-week high, with the underlying sentiment towards bullion remaining positive.
“While some profit-booking may emerge amid a stronger dollar, investors continue to view gold as an important store of value amid global economic and geopolitical uncertainty,” he said.
US exits $6.23 b
Gold was ruling around $4,332 an ounce on Monday. Investors in the precious metal have returned after it was ruling around $4,000 for quite some time in the second half of July.
Year-to-date, US investors have exited to the tune of $6.23 billion, while those in Canada and Italy have redeemed over $230 million. Chinese investors have turned net positive at $7.12 billion, followed by Indian investors, who have stuck to the precious metal faithfully, at $3.96 billion.
Inflows from the UK so far are $3.6 billion, while in Switzerland, they are $2.5 billion.
Down 23% since peak
Investments are net positive in Japan and Korea at over $650 million and also in Hong Kong Special Administrative Region at $956 million. Germany investors were net positive at $537 million and in Singapore, inflows were positive at $322 million.
The yellow metal soared to a record high of $5,608 an ounce on January 29 this year. Since then, it has shed 23 per cent of its gains. The precious metal has been declining on fears of inflation, a hike in US Fed rates and rising bond yields.
Gold rallied continuously since 2024 on hopes of the US Fed cutting rates, fears over geopolitical tensions and concerns over the dispute the US had with various countries, mainly China.
Published on August 10, 2026
