Positive inflows into gold ETFs continue for the 12th week in a row
Investments in physically backed gold exchange-traded funds (ETFs) remained positive for the twelfth week in a row last week, but for every $10 in inflows, there were $7 in outflows, data from the World Gold Council (WGC) showed.
Data showed that while US investors led ETF exits, Chinese investors led the inflows. While $2.08 billion was invested in gold ETFs last week, redemptions were to the tune of $1.46 billion.
The trend follows an over 3 per cent fall in the price of the yellow metal in the past month. On Monday, gold was quoted below $4,165 an ounce, down a little less than one per cent.
Prices fluctuate
“Gold prices witnessed fluctuations over the past week, falling to near two-month lows before recovering on bargain buying and softer US yields. While the rebound has brought some stability, prices remain sensitive to the dollar, interest-rate expectations and geopolitical developments,” said Darshan Desai, CEO of Aspect Bullion & Refinery.
“Hawkish Fed minutes and speeches, a firm dollar and US Treasury yields at two-decade highs weighed heavily on gold midweek of last week. Sentiment turned after President Trump spoke of ‘productive discussions’ with Iran, which cooled oil prices and eased inflation fears,” said Renisha Chainani, chief research officer at Augmont.
In the week ending October 2, the US led inflows, totalling $686 billion. That week, investments were $3.46 billion, and redemptions were $1.51 billion.
Asians top
Last week, US investments were a negative $132 million, but inflows in China were $365 million and in Switzerland $223 million. Overall, investments in North America were a negative $111 million, while they were positive in Europe and Asia at $370 million and $376 million, respectively.
Year-to-date, net investments by Asians topped at $17.72 billion. European investments were $17.38 billion, while they were $4.12 billion in North America.
Country-wise, Chinese inflows were $9.9 billion, followed by the UK at $.966 billion. Though the latest data on India were not available, the country was third in investing in ETFs at $4.7 billion, followed by the US at $4.2 billion.
Swiss investments were positive at $3.6 billion, as also Germans at $2.33 billion and the French at $1.8 billion. Canadians have redeemed more than they have invested, with inflows a negative $111 million.
Strongest floor
Chainani said official buying remained gold’s strongest floor. The People’s Bank of China stepped up purchases in September, its 23rd consecutive month of additions. World Gold Council data released this week showed global gold ETFs added 67.3 tonnes in September, taking holdings to a record 4,256 tonnes.
“The WGC also said weakness in Indian equities was pushing investors towards gold. State Street kept its base-case forecast of $4,750–5,500 by end-Q1 2027, citing record government debt and central bank demand,” she said.
“For the week ahead, gold may remain range-bound with a mildly positive bias, supported by domestic demand and rupee weakness, while US inflation data, Federal Reserve signals and geopolitical developments will continue to drive price movements,” said Desai
Gold soared to a record high of $5,608 an ounce on January 29. Since then, the precious metal has shed 25 per cent of its gains. It is over 3 per cent lower year-to-date.
The yellow metal shed its gains after the US attack on Iran on February 28. Fears of inflation impacting the global economy, rising treasury yields, hopes of high interest rates and investors switching over to the crude counter from gold have all compounded the precious metal’s fall.
Since 2024, gold had a sparkling rally on hopes of a cut in interest rates, geopolitical tensions and the US trade disputes with other countries.
Published on October 12, 2026