Investments in physically-backed gold exchange-traded funds (ETFs) experienced a downturn last week after two consecutive weeks of gains, as reported by the World Gold Council (WGC). For every dollar invested, more than double that amount was withdrawn, with North American investors leading the trend.
According to the WGC data, the previous week’s investments in gold ETFs totaled $1.21 billion, while withdrawals amounted to $2.65 billion. Experts attribute this negative investment trend primarily to investors grappling with supportive geopolitical conditions amid strong macroeconomic challenges in the United States.
In North America alone, outflows reached $2.11 billion, whereas Europe and Asia saw inflows of $0.56 billion and $0.90 billion, respectively. Within the U.S., investors opted to take profits valued at $2.23 billion. In contrast, the UK led in inflows into ETFs at $0.34 billion, with Germany at $0.13 billion, Canada at $0.12 billion, and China at $0.08 billion. Data specifically concerning India was not available.
Year-to-date, ETF inflows stood at $18.84 billion, a decrease from the previous week’s $20.28 billion. As of April 27, total investments reached $64.08 billion, with outflows at $43.81 billion.
Despite the downturn in North America, Asian investors remained optimistic about gold ETFs, with net investments rising to $15.02 billion from $14.92 billion the prior week. Europe also reported positive inflows of $3.49 billion. However, North America saw an outflow of $0.05 billion, a significant decline from the $2.06 billion net inflow reported the previous week.
India and China continued to show strong inflows into ETFs, with figures of $3.26 billion and $9.12 billion, respectively. Conversely, the U.S., France, and Germany registered negative net investments at $0.39 billion, $0.027 billion, and $0.005 billion respectively. Other nations, including the UK, Switzerland, and Japan, recorded positive net investments of $1.8 billion, $2.02 billion, and $1.26 billion, respectively.
The trends in gold ETFs correlated with the decline in gold prices, which have dropped over 15 percent from a record high of $5,608 per ounce on January 29. Currently, gold is priced at $4,699.50 per ounce, with June futures on COMEX quoted at $4,713.56. In India, the spot price for gold in Mumbai concluded at ₹1,51,186 per 10 grams, down from ₹1,51,479 during the weekend, while June contracts on MCX were at ₹1,52,033 per 10 grams.
The surge in gold prices, which more than doubled during its impressive run starting in 2024, was largely influenced by geopolitical crises, trade wars, and anticipated cuts in central bank interest rates. However, following tensions such as the Iran conflict, investors have begun to withdraw amid rising dollar values, increasing yield rates, and concerns over potential interest rate hikes by banks to manage inflation. Additionally, a rise in crude oil prices has prompted some investors to shift their focus away from gold to fossil fuel investments.
Published on April 27, 2026.
