Now Reading: Gold ETFs see third week of net inflows as prices surge
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Gold ETFs see third week of net inflows as prices surge
Gold exchange-traded funds (ETFs) attracted net inflows of $3.04 billion in the week ended August 7, the third consecutive week of positive investments, data from the World Gold Council shows. Inflows, led…
The Story in Brief
Gold exchange-traded funds (ETFs) attracted net inflows of $3.04 billion in the week ended August 7, the third consecutive week of positive investments, data from the World Gold Council shows. Inflows, led by the US, China and the UK, totalled $4.38 billion, while outflows were $1.33 billion. Year-to-date, net inflows into gold ETFs stand at $13.69 billion.
Gold prices climbed to a nine-week high of $4,376.56 an ounce on Monday, gaining 2.4% on Friday after US payrolls unexpectedly fell. The India Bullion and Jewellers Association's Prithviraj Kothari said gold surged 6.6% last week as September Fed rate hike odds dropped to 44% from 55%. China's central bank stepped up its gold purchases in July, adding the most bullion since October 2023. Investors now await US inflation data due Wednesday and Thursday.
The Indian Opinion
The breathless coverage of gold's rally often ignores the other side. Yes, inflows are positive, but US investors have pulled out $6.23 billion year-to-date. And the metal is still 23% down from its January record. The real test will be Wednesday's US CPI data. If inflation stays sticky, rate hike bets will harden and gold could retreat just as fast as it rose. Will the fear of missing out or fear of a hawkish Fed win?
Sources (2): thehindubusinessline.com, livemint.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
