Gold and other precious-metals funds drew $4.21 billion in weekly inflows, a six-month high, as global equity funds recorded their first withdrawals since May.
Key Points:
- Gold and other precious-metals funds attracted $4.21 billion in the week ended Aug. 26.
- Global equity funds saw $5.87 billion in outflows, ending a 13-week inflow streak.
- U.S. equity funds posted $22.33 billion in net sales, while technology funds still drew $3.2 billion.
Gold Fund Flows
The $4.21 billion inflow was the strongest weekly total for gold and other precious-metals funds in six months, according to LSEG Lipper data reported by Reuters.
The dataset covered 28,976 funds and showed a sharp contrast with broader equity withdrawals.
Global equity funds lost $5.87 billion in the week ended Aug. 26, their first weekly outflow since May 20 and the end of 13 consecutive weeks of inflows. U.S. equity funds accounted for $22.33 billion in net sales, though the categories are measured separately and do not prove investors directly shifted money from stocks into precious metals.
Sector flows were mixed. Technology funds attracted $3.2 billion, metals and mining funds drew $489 million, while energy funds posted $313 million in outflows for a second straight week.
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Equity Fund Shift
Reuters linked the broader equity reversal to caution ahead of Nvidia earnings and remarks from Federal Reserve Chair Kevin Warsh at the Jackson Hole Symposium. The split suggests investors were not making a uniform move away from risk, since technology funds continued to attract capital while global equities posted net withdrawals.
Gold also entered the week with supportive momentum.
Jim Wyckoff, a market analyst at American Gold Exchange, told Reuters on Aug. 24 that gold’s fundamentals and technical picture were turning bullish, while stabilizing and slightly lower bond yields were supporting the metal.
Separate World Gold Council data cited by Reuters showed gold-backed exchange-traded funds attracted 46.7 metric tons, worth $6.4 billion, in the previous week, their largest weekly demand in 10 months. Bullion also gained more than 5% that week, providing context for the latest jump in precious-metals fund demand.
Before the week ended Aug. 26, global equity funds had recorded inflows for 13 consecutive weeks. The $5.87 billion withdrawal therefore marked the first break in that run since May 20.
