Global gold-backed exchange traded funds (ETFs) attracted $18 billion in investments in August 2026, marking the second-highest monthly inflow ever recorded by value, according to the World Gold Council (WGC).
The strong demand was led by funds listed in North America and Europe, where investors increased exposure to gold amid economic uncertainty, inflation concerns and concerns over government debt levels.
North American gold ETFs recorded their third-largest monthly inflow at $7.7 billion, while European-listed funds saw their biggest-ever monthly inflow of $7.9 billion.
“Positive flows, together with a higher gold price, lifted global gold ETF assets under management (AUM) by 16 per cent to $615 billion. Collective holdings rose by 121 tonnes to 4,189 tonnes, the highest on record,” the WGC said.
Asian funds also reported strong demand, adding $2 billion during August, the highest monthly inflow since February. China accounted for most of the regional demand as improving local gold prices encouraged investors.
The WGC said North American demand accelerated sharply during the week of August 17, when investors added around $4 billion to gold ETFs in just five trading days. Factors such as US intervention to support the yen, rising long-term bond yields and a steady increase in gold prices supported demand.
European investors continued to view gold as a hedge against fiscal concerns and rising sovereign borrowing costs. The UK contributed $4.4 billion to regional inflows, while France recorded its strongest-ever monthly inflow at $1.5 billion.
Gold prices remain near key levels
Gold prices continued to trade below the $4,500 level as investors monitored inflation data from the US for clues on future Federal Reserve policy.
“Immediate resistance is at $4,500-4,530, and a break above targets next resistance at $4,600-4,630. Immediate support is at $4,400-4,370 (50/100-day EMA), with next support at $4,300-4,270. RSI at 51, hovering near the neutral 50 and edging lower, points to fading momentum rather than a clean reversal," Ponmudi added.
Analysts said gold’s near-term movement would depend on inflation trends, interest rate expectations and broader market sentiment.
