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Gold gains momentum as dollar loses ground and ETF inflows surge
Gold is drawing about $7 billion into gold and Bitcoin focused ETFs over the past five days, including $3.4 billion into SPDR Gold Shares.
Gold is building on recent momentum as the US dollar recovers from earlier losses tied to the Treasury’s plans to intervene in bond markets to control yields, even as investors question the scale and effectiveness of those measures, according to Action Forex.
The outlet links the shift to inflation staying above the 2% goal for an extended period, with July PCE rising 3.7% year over year and core PCE up 3.3% year over year, alongside derivatives pricing a 40% chance of a Fed rate hike in September.
Action Forex also cites renewed political pressure around Fed leadership and the Treasury’s plan to rein in Treasury yields using non market methods as factors weakening confidence in the dollar, feeding what it calls a debasement trade toward assets such as precious metals.
In ETF flows, the outlet says gold- and Bitcoin-focused funds brought in roughly $7 billion over five days, with SPDR Gold Shares receiving $3.4 billion of that inflow, and Natixis lifting its end of 2026 gold forecast to $5,000 per ounce from $4,600.
Latest closeGold $4,666.20 ▲0.6%|Bitcoin $79,985.12 ▲1.2%