Net investments in physically-backed gold exchange-traded funds (ETFs) turned positive last week, marking a shift after three consecutive weeks of outflows, according to the World Gold Council (WGC). Total investments in the ETFs reached $1.79 billion, while outflows amounted to $1.18 billion, resulting in a net inflow of $0.61 billion. Notably, investors in Asia, particularly in China, opted to exit these funds; however, North American investors, primarily from the US, infused $0.83 billion into the market.
Data regarding investments from India was unavailable, but it was reported that Japanese investors withdrew approximately $0.2 million. The US investments stood at $792.8 million, with the UK contributing $43.4 million. Additionally, France and Canada saw positive inflows of $73.2 million and $32.1 million, respectively, becoming significant players in gold ETF investments.
The movement toward gold ETFs follows a downturn in equities markets. Gold prices have plummeted by 19% since reaching a peak of $5,608 an ounce on January 29, making the precious metal appear more appealing to investors. Current gold prices are at $4,570 an ounce. This decline in prices coincided with the onset of the Iran war on February 28, alongside heightened fears of inflation, economic slowdown, a rise in bank interest rates, and increasing bond yields, which collectively impacted gold’s value.
Year-to-date, net inflows into the ETFs total $19.54 billion, an increase from $18.9 billion a week earlier. Total investments have risen to $70.81 billion, up from $69.02 billion the previous week, while total outflows are $51.27 billion, compared to $50.09 billion.
In the US, net investments decreased to $925.2 million, down from $1.72 billion the week prior. Contrastingly, the UK saw a rise in investments to $2.04 billion, while Switzerland recorded an investment total of $1.90 billion.
China and India remain the leaders in investment flows into ETFs. Chinese inflows were reported at $8.83 billion, down from $9.23 billion a week ago, while Indian investments slightly declined to $3.55 billion. In Japan, inflows increased to $1.26 billion, and South Korea saw $0.89 billion. Other notable contributions included $0.93 billion in the Hong Kong Special Administrative Region, $0.27 billion in Singapore, and $0.46 billion in Canada.
Gold ETFs experienced a surge in early 2024 as the metal’s price soared, driven by expectations of interest rate cuts by the US Federal Reserve and ongoing geopolitical tensions. However, the recent Iran war has altered the investment landscape.
Published on May 18, 2026.
