Physically backed gold ETFs recorded $2.62 billion in net inflows last week as investors return to the metal amid price stability. Data shows strong interest from the US and China, with India also emerging as a significant contributor to the global trend. Investors are watching how Federal Reserve policies and geopolitical tensions influence the commodity's demand.
Detailed Coverage
Physically backed gold exchange-traded funds (ETFs) saw a notable resurgence in investor interest last week, recording net inflows of $2.62 billion. This trend highlights a shift in sentiment toward gold as a traditional safe-haven asset, according to data from the World Gold Council. The total activity included gross investments of $3.36 billion against $750 million in outflows, reflecting a net positive demand for the precious metal.
Regional Demand Drivers and Indian Context
The United States and China were the primary drivers of this recent surge. North America accounted for $1.57 billion of the inflows, while Asia contributed $622 million. Within the Asian market, China remains a key player with year-to-date inflows totaling $6.03 billion. India also maintains a strong position in the global market, recording $3.86 billion in inflows year-to-date, marking it as the second-largest contributor globally. Conversely, European markets show a more mixed picture; while the region saw $463 million in inflows last week, countries like France and Italy experienced net outflows.
Market Factors and Price Trends
Gold prices have faced significant volatility throughout the year. After hitting a record high of $5,608 per ounce on January 29, prices have corrected by over 25%. As of Monday, July 27, 2026, gold was trading around $4,077.37 per ounce. Analysts note that the $4,000 per ounce level currently serves as a support floor for the metal, which may be encouraging recent buying activity.
Investment decisions are currently being shaped by a combination of global macroeconomic factors and geopolitical risks. Ongoing tensions in West Asia and evolving monetary policy decisions from the U.S. Federal Reserve remain central to price movements. Investors are particularly sensitive to these factors, as shifts in bond yields and inflation expectations often influence capital allocation between gold and other financial assets. While gold has seen substantial inflows recently, the year-to-date picture in North America still reflects net outflows of $7.14 billion, indicating that the recent buying marks a potential shift in strategy rather than a sustained long-term trend. The next phase for investors will be monitoring how central bank interest rate decisions and regional conflicts impact the sustainability of these flows.