Inflows into physically backed gold exchange-traded funds (ETFs) continued to be positive for the fifth consecutive week, as investors found the price of the yellow metal above $4,500 an ounce attractive.
Data from the World Gold Council (WGC) showed that the US and UK led the investments in gold ETFs last week. Investments in the week ending August 21 were $7.56 billion, while exits were to the tune of $1.18 billion, leaving the inflows net positive at $6.38 billion.
Colin Shah, MD of Kama jewelry, said a sharp rally witnessed over the past fortnight in gold underscored the metal’s enduring appeal as a haven asset amid evolving global macroeconomic cues. It reflects the catapult effect that has held back the bull run in the yellow metal price.
Darshan Desai, CEO, Aspect Bullion & Refinery, said the bullion market was witnessing strong momentum. Softer dollar expectations, haven demand and global interest rate cues continue to support precious metals.
Up 15% in a month
Gold, which has gained nearly 15 per cent in the past month and 6 per cent in the past week, traded at $4,676 an ounce on Monday at 1845 hours IST. Investments in gold ETFs began to rise after the yellow metal’s rise began, after hovering near $4,000 for quite some time.
Last week, inflows in the US were $4.37 billion, while in the UK, they were $1.07 billion. The French invested $443 million, the Chinese $280 million and the Germans $130 million. Data on India were unavailable.
Overall, North American investments were $4.37 billion, European $1.7 billion and Asian $293 million.
YTD inflows rise to $2.6 b
Year-to-date net investments increased to $23.611 billion, with total inflows being $105.45 billion and outflows $81.83 billion.
Investments in the US continued to be negative at $816 million, but China led the inflows at $7.39 billion. Investments in the UK in gold ETFs increased to $6.16 billion, while Indian investments have almost touched $4 billion. The Swiss also had investments to the tune of $2.63 billion.
Other countries that have witnessed significant inflows were Germany ($990 million), Hong Kong Special Administrative Region ($964.5 million), Japan ($844.8 million), and South Korea ($697.5 million). Canada is another country where net inflows are negative at $281.6 million.
Gold ETFs have been zig-zagging after the Iran war broke out on February 28. Fears of inflation, a rise in bond yields, a hike in US Fed rates, and consumers shifting to crude oil counters from gold all weighed on the yellow metal until a fortnight ago.
Why the gain
However, since then, the precious metal has gained on a subdued dollar, which has boosted the appeal of bullion. The US “surprise” decision to double long-term bond buybacks has driven gold uip on lower yields and the dollar’s weakening.
Since hitting a record high of $5,608 an ounce on January 29, the precious metal has dropped by over 17 per cent to date. 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 August 24, 2026
