Gold ETFs Record Fifth Consecutive Week of Inflows as Prices Hold Above $4,500 an Ounce

Inflows into physically backed gold exchange-traded funds (ETFs) remained positive for the fifth consecutive week, as investors responded to gold prices remaining above $4,500 an ounce. Data released by the World Gold Council (WGC) indicated that the US and UK led investments in gold ETFs during the week ending August 21.

For that week, total investments reached $7.56 billion against exits of $1.18 billion, resulting in net positive inflows of $6.38 billion. Regionally, North American investments stood at $4.37 billion, European investments at $1.7 billion, and Asian investments at $293 million. Specifically, the US recorded $4.37 billion in inflows, the UK $1.07 billion, France $443 million, China $280 million, and Germany $130 million. Data for India was not available in this weekly breakdown.

Year-to-date net investments have increased to $23.611 billion, with cumulative total inflows at $105.45 billion and total outflows at $81.83 billion. On a cumulative basis, China led inflows at $7.39 billion, followed by the UK at $6.16 billion, while Indian investments nearly reached $4 billion. Other notable cumulative inflows included Switzerland at $2.63 billion, Germany at $990 million, Hong Kong at $964.5 million, Japan at $844.8 million, and South Korea at $697.5 million. Conversely, net investments in the US continued to be negative at $816 million year-to-date, with Canada also showing negative net inflows at $281.6 million.

Gold has gained nearly 15 per cent in the past month and 6 per cent in the past week, trading at $4,676 an ounce on Monday at 1845 hours IST. Investments in gold ETFs began to climb after the metal's price increased from hovering near $4,000 for an extended period.

Colin Shah, MD of Kama Jewelry, noted that the sharp rally over the past fortnight underscored gold's enduring appeal as a safe-haven asset amid evolving global macroeconomic cues. Darshan Desai, CEO of Aspect Bullion & Refinery, added that the bullion market was witnessing strong momentum supported by softer dollar expectations, safe-haven demand, and global interest rate cues.

Gold ETFs had previously experienced volatility following the outbreak of the Iran war on February 28. Inflation fears, rising bond yields, US Federal Reserve rate hikes, and capital shifting toward crude oil counters weighed on the yellow metal until a fortnight ago. The precious metal has since gained due to a subdued dollar and a US decision to double long-term bond buybacks, which lowered yields and weakened the currency.

Despite recent gains, gold remains down over 17 per cent from its record high of $5,608 an ounce reached on January 29. Prior to that peak, gold experienced a strong rally between 2024 and February 29, 2026, driven by expectations of US Fed rate cuts, volatile geopolitical situations, and trade disputes between the US and other nations, particularly China.

"The consistent five-week inflow into gold ETFs highlights how macroeconomic shifts and currency dynamics continue to influence investor behavior globally. While geopolitical events and fluctuating bond yields create short-term volatility, the sustained interest in bullion reflects a calculated approach toward asset allocation during uncertain economic cycles. Investors and businesses must closely monitor these global liquidity trends and currency movements, as they directly impact commodity markets and broader capital deployment strategies." — Dr. Shishir Gupta, Founder & CEO, StartupLanes