Investments in gold ETFs continue to be net positive for 2nd week in a row

Investments in gold exchange-traded funds (ETFs) continued to be profitable for the second consecutive week, according to data from the World Gold Council (WGC). During the week ending July 31, inflows exceeded outflows, with $1.3 billion entering gold ETFs from Asia and Europe, while $0.90 billion was withdrawn by investors in the US.

Year-to-date, China and India have been the primary contributors to positive net investments in these ETFs, while US investors opted to take profits. In total, $88.62 billion flowed into gold ETFs up to July 31 this year, compared to $77.97 billion in outflows. Last week, US investors redeemed $313.6 million, while Canadian investors withdrew $141 million.

Chinese investments amounted to $294 million, followed by UK investments at $236 million, and Indian investments totaling $156.8 million. Gold prices, which surged nearly $200 this week, reached around $4,000 an ounce in the second half of July, prompting investors to return to ETFs due to perceived value. Currently, gold is trading at $4,330 an ounce, up over 7% this week.

Year-to-date, US investors have withdrawn $7.8 billion, while Italian and French investors have taken out $235 million and $219 million, respectively. Chinese investments remain net positive at $6.32 billion, while Indian investments stand at $3.97 billion.