Gold ETFs See Sustained Capital Inflows Amid US Debt Crisis Fears

Gold ETFs have seen sustained capital inflows since August, while Ray Dalio advises investors to allocate around 10% to 15% of their assets to gold due to potential US debt crisis risks within three years. COMEX gold futures rose by a cumulative 13.5% in August, hitting a three-month high on August 21, with prices closing near $4,660 per ounce.

The People's Bank of China has been buying more gold as prices fall, accelerating purchases month by month during the price correction from March to June. As of June 2026, it had increased its gold reserves for 20 consecutive months.

Citi and Deutsche Bank have set their year-end target prices at $5,000 to $6,000 per ounce and $4,700 to $5,100 respectively, citing core rationales including intervention by the US Treasury, central bank purchases, and potential 'de-dollarization' trades.