Federal Reserve policy fuels surge in gold ETF inflows

Following the Federal Reserve’s decision to keep the federal‑funds rate target at 3.50‑3.75% and signals from several Fed officials favoring a 25‑basis‑point hike, investors poured money into gold‑related exchange‑traded funds. From the start of July through July 30, the 20 domestic gold ETFs recorded a net inflow of about ¥85.8 billion, led by HuaAn Fund Management’s gold ETF with ¥53.3 billion and Yongying Fund Management’s gold equity ETF with ¥35.4 billion. Global gold‑ETF flows also turned positive, and the world’s largest gold ETF, the SPDR Gold Trust, added 3.37 tons of gold, its biggest weekly net purchase since mid‑June.

The Fed’s policy stance lifted U.S. Treasury yields – the 10‑year yield rose above 4.67% and the 30‑year above 5.2% – reinforcing the link between interest‑rate expectations and gold prices. Analysts note that continued central‑bank buying, which reached a net 289 tons in the second quarter according to the World Gold Council, provides a longer‑term floor for the market. With bond yields and the dollar index influencing short‑term price moves, the recent inflows suggest renewed investor interest in gold as a hedge amid higher‑rate uncertainty.