With US investors chipping in with $2.21 billion, inflows in the week ending September 18 were $4.24 billion, while exits were to the tune of $248 million
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Investments in physically-based gold exchange-traded funds (ETFs) continued to be positive for the ninth week in a row, with inflows from the US accounting for more than 50 per cent, data from the World Gold Council (WGC) showed.
With US investors chipping in with $2.21 billion, inflows in the week ending September 18 were $4.24 billion, while exits were to the tune of $248 million.
“While gold ended last week with modest gains, prices remain sensitive to the US dollar and bond yields,” said Darshan Desai, CEO, Aspect Bullion & Refinery.
Healthier demand
“Investment demand looks healthier. Digital gold purchases are running near ₹25 billion a month in India,” said Renisha Chainani, Chief Research Officer at Augmont.
Gold holds a bullish bias between $4,250 and $4,450 an ounce, said Prithivraj Kothari, Managing Director at RiddiSiddhi Bullions Ltd and President of India Bullion and Jewellers Association Ltd.
Last week, apart from the US, investments in gold ETFs flowed from UK ($628.5 million), China ($606.7 million), France ($353.6) and Germany ($112.3 million).
Indian investments
Data on India was not available, but Chainani said Indian investments in ETFS were up 67 per cent in August at ₹2,600 crore.
As of September 18, total investments in the precious metal’s ETFs were $122.21 billion. Outflows were $85.12 billion, leaving inflows net positive at $37.1 billion.
The nine weeks of continuous inflows have seen investments turn positive in the US at $4.36 billion. Until August, investments were negative. Inflows in China were the highest at $9.244 billion. UK has seen the second-highest investments at $8.97 billion, while India ($4.21 billion) has been pushed to fourth place with inflows rising from the US.
Other significant investments have been from Switzerland ($3.19 billion), Germany ($1.92 billion), France ($1.86 billion), Hong Kong Special Administrative Region $1.006 billion, Japan ($844 million), South Korea ($751.8 million) and Australia ($470.5 million). Inflows from Italy have been net negative at $73 million.
Volatile market
The nine weeks of positive inflow into the yellow metal’s ETFs come despite the market being volatile. Gold prices, which hovered above $4,000 an ounce in the first week of August, surged to $4,700 before paring gains.
Currently, gold is ruling at $4,363 an ounce, down over 6 per cent month-on-month and up just a per cent year-to-date. The precious metal witnessed a glittering rally from 2024 till February 28, rising to a record high of $5,608 an ounce on January 29.
The yellow metal gained on geopolitical tensions, hopes of a cut in US interest rates and the trade war between the US and other countries, particularly China.
However, once the Iran War broke out on February 28, gold slipped by over 20 per cent. The precious metal has dropped due to fears of inflation, a possible hike in interest rates, gains in bond yields and investors switching to crude oil, which soared to near $100 a barrel.
Gold prices remain sensitive to the dollar and bond yields, said Desai.
Published on September 21, 2026