Gold et Fs See Second Week of Inflows As Investors Find Value

In the week ended July 31, inflows into gold ET Fs were $1.3 billion, while outflows were $0.90 billion, led by the US. Year-to-date, China and India are the main reasons for net investments in the ET Fs staying positive, while investors in the US have chosen to book profits. Inflows till July 31 this year were $88.62 billion, while exits were to the tune of $77.97 billion.

Last week, investors in the US redeemed $313.6 million, while those in Canada redeemed $141 million. Chinese investments totalled $294 million, followed by those in the UK at $236 million. Inflows in India were the third at $156.8 million.

Currently, gold is quoted at $4,330 an ounce, up over 7 per cent this week. Gold, which has gained nearly $200 this week, was ruling around $4,000 an ounce in the second half of July. This encouraged investors to return to ET Fs, as they found value.

However, there was a $7 outflow for every inflow of $10, data from World Gold Council (WGC) showed. Photo Credit: istock.com.