Gold ETF Inflows Hit 12th Week: $2.08B In, $1.46B Out

Gold ETF inflows stayed positive for a 12th straight week, with $2.08 billion of inflows against $1.46 billion of redemptions, according to World Gold Council (WGC) data. The streak continues even as gold trades below $4,165 an ounce, which matters for traders watching the dollar, US yields and the Indian rupee.

Key Takeaways

Streak with a caveat: Flows were positive for a 12th week, but outflows ran at about $7 for every $10 of inflows.
Regional split: US ETF investments were negative $132 million last week, while China ETFs took in $365 million.
Record holdings: Global gold ETF holdings reached 4,256 tonnes after adding 67.3 tonnes in September.

What Happened

Gold was quoted below $4,165 an ounce on Monday, down a little less than 1%. The metal has fallen over 3% in the past month.

Darshan Desai, CEO of Aspect Bullion & Refinery, described the past week's swings. He said: "Gold prices witnessed fluctuations over the past week, falling to near two-month lows before recovering on bargain buying and softer US yields."

Renisha Chainani, chief research officer at Augmont, pointed to the midweek pressure. She said: "Hawkish Fed minutes and speeches, a firm dollar and US Treasury yields at two-decade highs weighed heavily on gold midweek of last week."

Background

Gold hit a record $5,608 an ounce on January 29. It has since shed 25% of its gains and is over 3% lower year-to-date. The decline followed the US attack on Iran on February 28. Inflation fears, rising Treasury yields, hopes for higher rates and a shift to crude have weighed on the metal.

In the week ending October 2, the US led ETF inflows, with investments of $3.46 billion and redemptions of $1.51 billion. Year-to-date net investments stand at $17.72 billion in Asia, $17.38 billion in Europe and $4.12 billion in North America.

The People's Bank of China stepped up gold purchases in September. It was the central bank's 23rd consecutive month of additions.

Market Impact

Gold: Steady ETF demand has coexisted with a price below $4,165, and the WGC said weakness in Indian equities was pushing investors towards the metal.
US dollar and Treasury yields: A firm dollar and two-decade-high US yields weighed on gold midweek, so gold stays sensitive to both.
Oil: Prices cooled after President Donald Trump spoke of productive discussions with Iran, which eased inflation fears.
USD/INR: Rupee weakness is cited as a support for domestic gold demand (reference rate, 2026-10-12: 96.4100).

What to Watch Next

US inflation data: Inflation fears are one of the factors cited as weighing on gold; no release date was given.
Federal Reserve signals: Hawkish Fed minutes and speeches pressured gold last week; no dates were given for further signals.
Geopolitical developments: Gold's decline began after the February 28 US attack on Iran, and no date was given for the Trump-Iran discussions.
State Street forecast: The firm's base case puts gold at $4,750-5,500 by the end of the first quarter of 2027.

Bottom Line

Gold ETF inflows have stayed positive for 12 weeks, but redemptions absorbed a large share of them last week. The US and China moved in opposite directions, and the dollar and US yields remain the main pressure points cited for the gold price.

Gold ETF Inflows Extend to 12th Week as Outflows Persist