Gold Fund Flows Turn Positive Amid Strengthened Relationship Between Private Activity and Prices

Gold fund flows have turned positive after months of outflows, according to Goldman Sachs. The investment bank says that private activity is becoming more closely tied to gold prices, with a strengthened relationship between fund activity and gold prices since the start of 2025.

This observation describes a changing market structure, but it's not a new price target. Goldman's analysis covers mutual funds and related investment products, measuring one defined channel of demand rather than every physical, futures or official-sector transaction.

Gold was trading near $4,426.70 late on Monday, up about 1.26% on the day and more than 10% over one month. The metal has still fallen over three and six months, making the renewed fund demand notable against a volatile recent path.

BofA's flow data corroborate the shift, with gold receiving inflows for six consecutive weeks. In the same weekly cross-asset tally, cash drew $25.4bn, bonds $23.8bn, stocks $16.1bn and crypto $0.3bn. The current rally offers an immediate test of whether the association between fund activity and prices persists.