Gold exchange-traded funds (ETFs) recorded $3.04 billion in net inflows for the week ended August 7, a third straight week of positive investments, according to data from the World Gold Council (WGC). Gold prices gained over 6% during the week, with investor exits totalling $3 for every $10 invested.
Weekly flows: US, China, UK lead
Weekly inflows reached $4.38 billion, led by the US at $1.6 billion, China at $796 million and the UK at $663 million. Switzerland and Germany each added more than $200 million. Outflows of $1.33 billion, led by the US, were outweighed by purchases, leaving net positive investment of $3.04 billion. Canadian investors redeemed $526 million during the week, the WGC data showed.
Year-to-date: $13.69 billion net positive
Year-to-date, net investments in gold ETFs stand at $13.69 billion, built on cumulative inflows of $92.99 billion against outflows of $79.3 billion. China and India together contributed $11 billion of net inflows, according to the WGC.
| Region | Weekly flow (week ended Aug 7) | YTD net flow |
|---|---|---|
| US | +$1.6 billion | -$6.23 billion |
| China | +$796 million | +$7.12 billion |
| UK | +$663 million | +$3.6 billion |
| Canada | -$526 million | Redeemed over $230 million (with Italy) |
| Switzerland | Over $200 million | +$2.5 billion |
| Germany | Over $200 million | +$537 million |
| India | n/a | +$3.96 billion |
| Japan & Korea | n/a | +$650 million+ |
| Hong Kong SAR | n/a | +$956 million |
| Singapore | n/a | +$322 million |
Experts: support zone at $3,950–4,000
Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions Ltd and President of India Bullion and Jewellers Association Ltd, said gold surged roughly 6.6% last week to near $4,350/oz after July US payrolls fell by 23,000 against expectations of an 80,000 gain. That pushed September Fed rate-hike odds down to 44% from 55%.
"Gold's $3,950–4,000 levels are the support zone." — Prithviraj Kothari
Kothari also flagged unresolved Strait of Hormuz tensions and a US-Japan intervention to support the yen as sources of added volatility. The Indian rupee held between 94.89–95.46 against the dollar, with domestic demand investment-led ahead of the festive season.
Darshan Desai, CEO of Aspect Bullion & Refinery, said the yellow metal remains well supported after recently touching a seven-week high, with underlying sentiment towards bullion staying 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." — Darshan Desai
Price action: 23% below January record
Gold was ruling near $4,332 an ounce on Monday, according to the report, after trading around $4,000 for much of the second half of July. The metal hit a record $5,608 an ounce on January 29 this year and has since shed 23% of those gains. The report attributes the decline to fears of inflation, US Federal Reserve rate hikes and rising bond yields. Gold had rallied continuously since 2024 on hopes of Fed rate cuts, geopolitical tensions and concerns over US trade disputes with various countries, mainly China.
Implications for corporates and treasurers
The WGC figures underscore sustained institutional demand for gold as a store of value amid the inflation, Fed-rate and bond-yield concerns cited in the report. For corporate treasurers, Kothari's cited shift in September Fed rate-hike odds to 44% from 55% points to a changing dollar-rate outlook that directly bears on the cost of dollar-denominated trade credit. The rupee's 94.89–95.46 range and the yen-support intervention flagged by Kothari highlight the FX volatility that importers and exporters must price into hedges. With US investors having exited $6.23 billion year-to-date while China and India added $11 billion, the geographic rotation in gold ETF flows also signals divergent currency and rate expectations across the world's largest bullion markets.
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