The UK and India saw investors still being positive on the yellow metal, as inflows totalled $2.15 billion
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Physically backed gold exchange-traded funds (ETFs) witnessed a mixed trend in the past two weeks, with inflows being positive in the week ending July 10 and negative in the week ending July 3, data from the World Gold Council (WGC) showed.
Led by France, the US and Australia, inflows turned positive last week at $1.8 billion, but the UK and Chinese investors exited, taking outflows to $1.51 billion, resulting in $0.34 billion net inflows.
In the week ending July 3, investors in the US, China, Germany, and Canada led the exits, with total encashment at $3.19 billion. The UK and India saw investors still being positive on the yellow metal, as inflows totalled $2.15 billion.
Awaiting US data
“Gold lost ground last week, giving up its brief rebound as renewed US-Iran military strikes stirred fresh inflation worries and pushed up the odds of another Fed rate hike,” said Renisha Chainani, head of research at Augmont.
Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said market participants now await the US CPI inflation data due on Tuesday evening, which will be a key input for the Federal Reserve’s interest rate outlook and could determine the next direction for bullion.
“A higher-than-expected inflation reading may strengthen the dollar further and keep pressure on gold, while softer inflation could support a recovery,” he said.
With gold prices hovering between $4,000 and $4,200 an ounce, investors have kept a low profile over the past two weeks. Inflows into and outflows from gold ETFs have been low-key over the past fortnight. Gold, which soared to a record high of $5,608 an ounce on January 29, has lost over 25 per cent so far. On Monday, gold hovered around $4,060 an ounce, down over 5 per cent in the past month.
N America leads outflows
In the week ending June 3, outflows in North America from gold ETFs were $1.20 billion, followed by Asia at $206 million. In Europe, investors invested to the tune of $457 million.
Last week, inflows in Europe were $163 million, followed by North America at $105 million. Asia saw $40 million in outflows, while investments by other continents were $113 million.
As of date, ETF inflows have been negative in the US at $8.57 billion, followed by Italy at $211 million. Investments have been positive at $5.31 billion in China, $3.88 billion in India, $2.11 in the UK and nearly $2 billion in Switzerland.
With inflows over $900 million, Japan and the Hong Kong state-administered region have also been positive contributors to gold ETFs.
Heading south
The precious metal has been heading south since the Iran war broke out on February 28. Gold is being hammered on fears of inflation, a rise in bond yields and crude oil prices and hopes of an increase in US Fed interest rates.
The yellow metal went on a dazzling rally since 2024 on US Fed interest rate cuts, the US trade dispute with China and other nations, and geopolitical tensions, particularly the Ukraine war.
Published on July 13, 2026
