Investments in physically backed gold exchange-traded funds (ETFs) were net positive last week, with investors in the US and China finding value in the yellow metal, data from the World Gold Council (WGC) showed. It was for the 13th consecutive week that inflows were positive.

According to data, inflows into gold ETFs were $2.3 billion, while $479 million were redeemed, leaving investments net positive at $1.91 billion. 

Experts said investors see value in the precious metal with its prices hovering below $4,200 an ounce. It seems to have a floor at $4,000, they said. 

On Tuesday, gold was quoted at $4,125 an ounce, down over 4 per cent month-on-month and nearly 0.5 per cent in the past week.

Darshan Desai, CEO, Aspect Bullion & Refinery, said gold remains volatile, with prices recovering some ground. “US inflation, interest-rate expectations, the dollar and bond yields continue to shape market sentiment, while geopolitical developments add to the uncertainty,” he said.

“Gold held in a tight range last week. Hot US inflation data, with CPI at 3.7 per cent and PPI at 6.3 per cent, kept December Fed hike odds near 90 per cent, and 10-year yields above 5.1 per cent, capping gold’s upside,” said Renisha Chainani, chief research officer at Augmont. 

Investors in the US chose to invest nearly $1 billion last week, while Chinese investors brought in $498 million. Inflows in the UK, which have consistently been positive, were $237 million, while they were $141.8 in Japan. French chose to exit, encashing $44 million.

Year-to-date, Asian and Chinese investments in ETFs topped. Investors in Asia have so far brought $18.38 billion, followed by those in Europe ($17.62 billion).

Country-wise, inflows into ETFs in China have topped $10 billion at $10.41 billion. Investments in the UK were $9.8 billion, followed by those in the US at $5.22. Indian inflows were the fourth-largest at $4.7 billion, though weekly updates are not available.

Inflows in Switzerland ($3.56 billion), Germany ($2.42 billion), France ($1.77 billion) and Japan ($1.06 billion) were significant.

“In the week ahead, volatility is likely to persist as markets track US economic data, Federal Reserve signals and currency movements. A weaker dollar and easing yields could support prices, while concerns over inflation and higher interest rates may trigger further corrections,” said Desai.  

Gold’s key support sits at $3,950-4,200 (₹1,45,500–₹1,51,000). Festive and central-bank demand should keep dip-buying alive heading into Dhanteras,” said Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions Ltd and President of India Bullion and Jewellers Association Ltd.

Chainani said this week,  US housing data, jobless claims and flash PMIs, along with Fed commentary ahead of the October 28 decision and  crude oil prices will be the key to the precious metal’s fortunes.

Gold rallied between 2024 and January 2026 on hopes of US Fed rate cuts, geopolitical tensions and the trade war between the US and its other global partners.

After soaring to a record high of $5,608 an ounce, the yellow metal has shed over 25 per cent of its gains after the Iran war broke out on February 28. Fears of inflation, investors switching to crude oil from precious metals, pessimism over global economy and rising bond yields have dragged gold to its current level.

Published on October 20, 2026