Net investments in physically backed gold exchange-traded funds (ETFs) continued to be positive for the fourth week in a row last week, per data from the World Gold Council (WGC).
Though gold prices did not gain much in the past week, the yellow metal’s price ruling near $4,400 an ounce attracted investors. In the week ended August 7, inflows, led by the UK and US, into gold ETFs were $4.88 billion, while outflows were $1.36 billion. Chinese investments were, surprisingly, a negative $9.2 million.
Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions Ltd and President of India Bullion and Jewellers Association Ltd, said gold held onto most of last week’s rally despite Friday’s profit-taking.
“The Strait of Hormuz standoff continued weighing on sentiment, with Trump rejecting Iranian compensation demands and Brent’s swings pressuring the rupee,” he said.
Things to watch out for this week
Renisha Chainani, chief research office at Augmont, said the market will watch FOMC minutes, July industrial production data, the Philadelphia Fed Manufacturing Index, and flash August PMIs, with Fed Chair Kevin Warsh’s remarks at the Jackson Hole symposium later this month shaping up as the next major catalyst for precious metals.
Year-to-date, net investments in the ETFs are positive at $17.22 billion, with $97.88 billion being the inflows and $80.66 billion outflows. China and India continued to keep inflows into gold ETFs positive, with investments to the tune of $11 billion.
Last week, investors in the UK invested $1.53 billion, while US investors added $1.04 billion. Other countries that chipped in were Germany and France, with over $300 million each, besides Japan, with $174 billion.
US inflows negative
Year-to-date, US investors have redeemed $5.19 billion, while Canadians have withdrawn $279 million, and exits in Italy are $234 million.
In Asia, China’s investments are valued at $7.01 billion, while India’s are at $3.96 billion. Other countries in Asia whose investments are net positive are the Hong Kong Special Administrative Region ($960 million), Japan ($844 million), South Korea ($691 million) and Singapore ($327 million).
The precious metal has been on a downslide after it soared to a record $5,608 an ounce on January 29 this year. Since then, it has shed 22 per cent. On Monday, gold was quoted at $4,385 an ounce at 1915 hours IST.
The precious metal has been declining on fears of inflation, a hike in US Fed rates and rising bond yields. However, recent economic developments have boosted the yellow metal from around $4,000.
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 17, 2026
