Investments in physically-backed gold exchange-traded funds (ETFs) turned positive in the past fortnight, after turning negative in March. However, for every $3 inflow, there was over a $1 outflow during the period, data from the World Gold Council (WGC) showed.
Asia has single-handedly ensured that the inflow remains positive till now, with the region making up over 86 per cent of net investments.
The WGC year-to-date (as of April 10) data showed that investments in gold ETFs were more than a year ago, but outflows were also triple what they were a year ago. Net inflows were $10 billion lower than a year ago.
Higher exits
Investments in gold ETFs in the week ended April 3 were $5.26 billion, and in the week ended April 10, they were $3.3 billion. The outflows were $1.96 billion and $1.23 billion, respectively. Overall, inflows in the funds were $3.3 billion and $2.064 billion.
Year-to-date, investments in gold ETFs totalled $60.17 billion compared with $43.46 billion a year ago. Investors’ exit was $43.05 billion compared with $15.98 billion a year ago. Net investments were $17.12 billion against $27.48 billion last year.
In the past fortnight, exits from ETFs were more from Canada and Italy. Year-to-date, US investors have chosen to exit ETFs, with net investments turning negative at $264 million. However, US investments in the past fortnight totalled over $1.35 billion. Inflows in Germany are also negative at $204 million.
The UK witnessed a huge inflow of $1.33 billion the week ending April 3, while they slowed to $0.38 billion last week. Germany witnessed investments to the tune of $200 million in the past fortnight, while inflows in Switzerland topped $500 million.
Chinese lead inflows
In Asia, Chinese investments were over $1.3 billion, while Indians invested $168 million in the week ending April 3. Last week’s details for India were not available.
Year-to-date, China and India lead the investments in gold ETFs. China’s net inflow till now is $9.05 billion, while India’s inflow is $3.27 billion. Switzerland ($1.71 billion) and Japan ($1.26 billion) are the other two countries that have witnessed significant investments, apart from the UK ($856 million).
Region-wise, fund flows in North America were a negative $68.5 million, while they were up at $1.96 billion in Europe. Investments in Asia increased to $14.84 billion, while in other regions, they were positive at $355 million.
Current prices
Gold has gained 10.5 per cent since the beginning of the year, shedding most of its gain after it soared to a record high of $5,608 an ounce on January 29. Currently, the yellow metal is ruling at $4,774.51 an ounce. Gold futures on COMEX for June delivery are quoted at $4,797.50 an ounce.
In India, gold June contracts on MCX ended at ₹1,51,983 per 10 g on Monday. In Mumbai, spot gold prices closed at ₹1,50,011 per 10 g. Markets were closed on Tuesday for Ambedkar Jayanti.
Gold prices had soared in 2024 and 2025 on geopolitical crises, the US Fed proposals to cut interest rates and uncertainty due to the US trade disputes with other nations.
The precious metal’s prices have headed south after the Iran war broke out on fears of inflation, chances of hike in interest rates, a strong dollar and concerns over the economy.