Stack of gold bars.
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Investments in physically backed gold exchange-traded funds (ETFs) continued to be positive for the third week in a row last week.\u00a0<\/p>\n
With gold prices gaining over 6 per cent in the week, exits made up $3 for every $10 investments, data from the World Gold Council (WGC) showed.<\/p>\n
In the week ended August 7, inflows, led by the US, China and the UK, into gold ETFs were $4.38 billion, while outflows, led by the US, were $1.33 billion.\u00a0This left inflows net positive at $3.04 billion.<\/p>\n
Year-to-date, net investments in the ETFs are positive at $13.69 billion with $92.99 billion being the inflows and $79.3 billion outflows. China and India continue to keep inflows in gold ETFs positive with investments to the tune of $11 billion.<\/p>\n
Last week, investors in Canada redeemed $526 million, while those in other parts of the world chose to invest. Investments were led by the US at $1.6 billion, followed by China at $796 million. British investors chipped in with $663 million, while inflows in Switzerland and Germany were over $200 million.<\/p>\n
Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions Ltd and President of India Bullion and Jewellers Association Ltd, said gold surged roughly 6.6 per cent last week to near $4,350\/oz after July payrolls fell by 23,000 against expectations of an 80,000 gain. This pushed Fed rate-hike odds for September down to 44 per cent from 55 per cent.\u00a0<\/p>\n
Unresolved Strait of Hormuz tensions and a US-Japan intervention to support the yen added further volatility. The rupee held between 94.89\u201395.46. Indian demand stayed investment-led ahead of the festive season.\u00a0<\/p>\n
\u201cGold\u2019s $3,950\u20134,000\u00a0 levels are the support zone,\u201d he said.<\/p>\n
Darshan Desai, CEO, Aspect Bullion & Refinery, said the yellow metal continues to remain well supported after recently touching a seven-week high, with the underlying sentiment towards bullion remaining positive.<\/p>\n
\u201cWhile some profit-booking may emerge amid a stronger dollar, investors continue to view gold as an important store of value amid global economic and geopolitical uncertainty,\u201d he said.\u00a0<\/p>\n
Gold was ruling around $4,332 an ounce on Monday. Investors in the precious metal have returned after it was ruling around $4,000 for quite some time in the second half of July.\u00a0\u00a0\u00a0<\/p>\n
Year-to-date, US investors have exited to the tune of $6.23 billion, while those in Canada and Italy have redeemed over $230 million. Chinese investors have turned net positive at $7.12 billion, followed by Indian investors, who have stuck to the precious metal faithfully, at $3.96 billion.\u00a0<\/p>\n
Inflows from the UK so far are $3.6 billion, while in Switzerland, they are $2.5 billion.\u00a0<\/p>\n
Investments are net positive in Japan and Korea at over $650 million and also in Hong Kong Special Administrative Region at $956 million. Germany investors were net positive at $537 million and in Singapore, inflows were positive at $322 million.\u00a0<\/p>\n